Stop. Think. Invest.: A Behavioral Finance Framework for Optimizing Investment Portfolios

· McGraw Hill Professional
Ebook
336
Pages
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About this ebook

Use the power of behavioral finance to make smarter, better-informed decisions through every step of the investing process

In an economy where markets are more unpredictable than ever, emotions can derail the efforts of even the most experienced investors and wreak havoc on portfolio returns.

Applying powerful behavioral finance concepts, Stop. Think. Invest. provides a framework for identifying personal biases and avoiding mistakes that can cost big profits. Based on the author’s extensive research and 100 key behavioral finance concepts, this guide provides a winning 12-step process you can use to successfully manage your trading and investing for long-term success, including:

  • Begin the initial research into a new stock
  • Create an investment thesis—why are you buying the stock?
  • Trade timing and size—when are you buying and how much?
  • Make the initial purchase
  • Review the trade—round up or round down
  • Test your original investment thesis
Stop. Think. Invest. reveals critical information about behavioral finance flaws, such as anchoring, confirmation bias, recency bias, and loss aversion.

Unlike other behavioral investing guides, Stop. Think. Invest. offers a fully organized and practical approach to applying behavioral finance to everyday investing.

About the author

Michael Bailey, CFA, is Director of Research and Investment Committee Chair for FBB Capital Partners, a boutique Washington, D.C., investing firm with $1.4 billion assets under management, as of 12/31/2020. Bailey created and launched an investment strategy for managing a portfolio of stocks with high environmental, social, and governmental metrics. He served as principal and equity research analyst for Legg Mason and held positions at Bear Sterns and Raymond James.

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