Beyond Greed and Fear

Even the best Wall Street investors make mistakes. No matter how savvy or experienced, all financial practitioners eventually let bias, overconfidence, and emotion cloud their judgement and misguide their actions. Yet most financial decision-making models fail to factor in these fundamentals of human nature. In this guide to what really influences the decision-making process, Hersh Shefrin uses psychological research to help us understand the human behaviour that guides stock selection, financial services and corporate financial strategy. Shefrin argues that financial practitioners must acknowledge and understand behavioural finance - the application of psychology to financial behaviour - in order to avoid many of the investment pitfalls caused by human error.