The Laws of Wealth
Psychology and the secret to investing success
By Daniel Crosby
Jacket text
GOLD MEDALLIST IN THE AXIOM BUSINESS BOOK AWARDS 2017
From New York Times and USA Today bestselling author, Dr Daniel Crosby, comes the behavioral finance book all investors have been waiting for.
In The Laws of Wealth, psychologist and behavioral finance expert Daniel Crosby offers an accessible and applied take on a discipline that has long tended toward theory at the expense of the practical. Readers are treated to real, actionable guidance as the promise of behavioral finance is realised and practical applications for everyday investors are delivered.
Crosby presents a framework of timeless principles for managing your behavior and your investing process. He begins by outlining ten rules that are the hallmarks of good investor behavior, including ‘Forecasting is for Weathermen’ and ‘If You’re Excited, It’s Probably a Bad Idea’. He then goes on to introduce a unique new taxonomy of behavioral investment risk that will enable investors and academics alike to understand behavioral risk in a newly coherent and complete way.
From here, attention turns to the four ways in which behavioral risk can be combatted and the five equity selection methods investors should harness to take advantage of behaviorally-induced opportunities in the stock market. Throughout, readers are treated to anecdotes, research and graphics that illustrate the lessons in memorable ways. And in highly valuable ‘What now?’ summaries at the end of each chapter, Crosby provides clear, concise direction on what investors should think, ask and do to benefit from the behavioral research.
Dr. Crosby’s training as a clinical psychologist and work as an asset manager provide a unique vantage and result in a book that breaks new ground in behavioral finance. You need to follow the laws of wealth to manage your behavior and improve your investing process!
About the author
Educated at Brigham Young and Emory Universities, Dr. Daniel Crosby is a psychologist, behavioral finance expert and asset manager who applies his study of market psychology to everything from financial product design to security selection. He is co-author of the New York Times bestseller Personal Benchmark: Integrating Behavioral Finance and Investment Management and founder of Nocturne Capital. He is at the forefront of behavioralising finance. His ideas have appeared in the Huffington Post and Risk Management Magazine, as well as his monthly columns for WealthManagement.com and Investment News.
Daniel was named one of the "12 Thinkers to Watch" by Monster.com, a "Financial Blogger You Should Be Reading" by AARP and in the "Top 40 Under 40" by Investment News.
When he is not consulting around market psychology, Daniel enjoys independent films, fanatically following St. Louis Cardinals baseball, and spending time with his wife and three children.
Reviews
I think The Laws of Wealth should be read by all those new to investing.
First Book Investors Need to Read to Be Successful…One of the useful features of this book is the “What’s new” summary sections at the end of each chapter.
Dr. Daniel Crosby is one of the preeminent behavioral psychologists in investing today, and it shows with this tour de force of how an investor can manage their wealth. With these few simple rules, investors can easily build a framework allowing them to thrive, even when their human instincts try to sabotage their investing. Get this book!
When I’m looking for sharp, against-the-grain insights on how we can and should make better investing decisions, I always turn to Daniel Crosby. If he s publishing, blogging, or Tweeting, I want to know about it. It also doesn’t hurt that he’s often hilarious in taking our built-in foibles and creating the potential for ending up in a much better place than we would otherwise. This book is yet another fantastic contribution to the practice of sound (and sane) investing.
Step away from CNBC and into financial therapy! People often think that buy low, sell high is the first (and only) rule of investing. This deceptively simple phrase motivates most, if not all investors, and yet many investors fail to successfully follow this simple mantra. In The Laws of Wealth, Daniel Crosby explains why we struggle with deceptively simple investment decisions, suggesting that first rule of profitable investing is to get out of your own way.
Drawing the connection that what makes us interesting as humans can make us unsuccessful at managing our money in times of turbulence, Dr. Crosby provides a safe haven with his framework for success. This book is not only informative but enjoyable, as he gently exposes how human behavior impacts our decision making.
Individual investors are often their own worst enemies, whether they re selling when they should be buying, focusing on their stocks day-to-day swings or letting the media drive them into a panicked emotional state. In Dr. Daniel Crosby s newest book, he breaks down how to implement a set of easy-to-follow rules to keep investors on track. Don’t let your mind ruin your investing outcomes. Read his book and arm yourself against yourself today.
Using lively and engaging real-life examples Dr. Crosby gives insights into innate human behavior and its role within the financial markets. In this entertaining book he provides brilliant invaluable practical framework for investors, financial professionals and anyone in search of true wealth.
The financial services industry is broken and has for too long ignored the human factor. Savvy investors and advisors understand that emotions, decisions and behavior are at least as important as big returns and Dr. Daniel Crosby explains just that in The Laws of Wealth
Media coverage
From Money Marketing:
Myth 3 – A client’s investment portfolio should meet or beat a relevant investment index or benchmark The only benchmark that matters is meeting one’s personal financial life goals and to do that you need a personal plan that gives proper context to saving, investing and spending decisions. As behavioural finance expert Dr Daniel Crosby… Read more »
From The Resilient Advisor:
Dr. Daniel Crosby is one of the industry’s top thought leaders on Behavioral Finance. He authored the New York Times bestseller ‘The Laws of Wealth’ and is the host of the popular Standard Deviations podcast. Daniel recently joined Brinker Capital as the Chief Behavioral Officer. On this episode we discuss how financial advisors can leverage… Read more »
From The Acquirer’s Multiple:
This week we’re going to take a look at twenty of the best books on investor pyschology. 16. The Laws of Wealth: Psychology and The Secret To Investing Success (Daniel Crosby)
From Market Watch:
Simple choices — putting money aside for retirement, increasing contributions once a year, holding tight during market volatility — are what drives investors to success, said Daniel Crosby, author of “The Laws of Wealth: Psychology and the secret to investing success” (Harriman House). “Despite the unequivocal truth that investor behavior is a better predictor of… Read more »
From Investment News:
Despite the enormous wealth creating power of the market, looking at it too closely can be terrifying. In the latest episode of “On Your Best Behavior,” Daniel Crosby looks at the immortal words of Jack Bogle: “Don’t do something, just stand there!”
From Benzinga:
Dr. Daniel Crosby is a well-known author and speaker on Behavioral Finance and brings the scientific perspectives, research, and insights on the topic.
From Successful Farming:
Daniel Crosby, founder of Nocturne Capital and author of a new book, The Laws of Wealth, points out that the familiar can be a danger when you’re aiming to diversify. “Our familiarity with something makes it appear less risky, which is why people tend to overinvest in the stock of their employers and tend to… Read more »
From Value Walk:
An interview with Dr. Daniel Crosby On Behavioral Finance: The Laws of Wealth Which behavior or behavioral trait do you think is the most damaging for investors and their returns? One of the shortfalls of previous works on behavioral finance is that they present lists of investor biases with no organizing framework. At my last… Read more »
From The Key Point:
Psychologist Daniel Crosby works in the field of behavioral finance. “Given that you, as a member of the human family, have tendencies toward impatience, arrogance and a fetish for complexity, it is very likely that you will screw this up… At my last count, psychologists and economists had documented 117 biases capable of obscuring lucid… Read more »
Contents
Acknowledgements
Preface or: How I Learned to Stop Worrying and Read this Book
Introduction: Of Worms & Wealth
Part One. The Rules of Behavioral Self-Management
Paradox of Primates & Formalwear
Rule #1. You Control What Matters Most
Rule #2. You Cannot Do This Alone
Rule #3. Trouble Is Opportunity
Rule #4. If You're Excited, It's A Bad Idea
Rule #5. You Are Not Special
Rule #6. Your Life Is The Best Benchmark
Rule #7. Forecasting Is For Weathermen
Rule #8. Excess Is Never Permanent
Rule #9. Diversification Means Always Having To Say You're Sorry
Rule #10. Risk Is Not A Squiggly Line
Applying the Rules of Behavioral Self-Management
Part Two. Behavioral Asset Management
The State of Money Management
Managing Behavioral Risk
The Four Cs of Rule-Based Behavioral Investing
The Five Ps of Equity Investing
Epilogue. Behavioral Investing in a World Gone Mad
Bibliography
Index
| Published: | 27/06/2016 |
|---|---|
| Edition: | 1st |
| Pages: | 286 |
| Formats: | hardback - ISBN 9780857195241 ebook - ISBN 9780857195258 |
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