...any book title that starts off with those three words is bound to catch my interest!
I've found a new way to get to know someone. I ask them to recommend a book list. Then, I pick a couple of the titles that I like, buy the books, get a highlighter and sit down to "meet" the person who recommended them to me. My most recent win came in reaching out to a client I have worked with/for over the past year.
I asked the principal staff for recommendations, and received several. This is one I completely enjoyed. And, what really hooked me was the subtitle: "Lessons from the new science of behavioral economics."
On the back of the book, I read this quote:
A terrific introduction to the emerging science of behavioral finance, which identifies the ways in which investors' minds play tricks on them.
Upon reading through the book, I can say I agree! So many times, while reading Tom and Gary's words, I found myself laughing out loud or shaking my head in wonder.
I especially appreciated how these guys were able to take economic theory (terms like "vocabulary of gain," and "sunk cost fallacy") and make it practical. Perhaps the paragraph that stands out the most comes on page 99.
This probably isn't too surprising. Knowingly or not, you probably pay good money all the time to avoid feelings of regret or to otherwise maintain status quo. Leaving money in a bank account rather than putting the cash in an investment...staying in a relatively low-paying job rather than making a switch...failing to sell an investment...delaying a purchase...keeping revolving balances on a high-rate credit card...
I would recommend picking this one up! Thanks, Ron, for sending this one to me.