Value Investing and Behavioral Finance

Parag Parikh


In Circulation

"When others are greedy be fearful and when others are fearful be greedy"-ill-timed bouts of greed and fear among investors make stock markets volatile. Ratinal and successful investing is all about restraining and channelizing these emotions and understanding behavioral finance, not market sentiments, crowd behavior or company performances.

At a time when market upheavals are eroding investors' confidence, dooming life's earnings and corporate fortunes, and shipping up mass hysteria-Value Investing and Behavioral Finance comes as an antidote to investor anxiety and a guide to sane and safe investment decisions. Using investing trends in Indian capital markets over the last three decades, it shows how collective behavioral biases affect investment decisions, returns and market vagaries. As a corrective, it spells out long-term value and contrarian investing strategies based on the principles of behavioral finance.

Further, it advises on how to spot investment opportunities and pitfalls in commodity stocks, growth stock, PSUs, IPOs, sectors and index stocks. It also alerts the reader to a 'bubble' or crisis situation, and ways to identify and insure against it.

Value Investing and Behavioral Finance, a timely offering from a seasoned investment strategist, is a must read for stock brokers, bankers, lay investors, portfolio manager, fund manager, and students of finance.

What will you learn from this book

  1. Understanding Investor Behavior: Discusses how behavioral biases impact investment decisions and the rationale behind market anomalies.

  2. Contrarian Approach: Explores the value of contrarian thinking in value investing, going against market sentiment to find opportunities.

  3. Psychology of Investing: Examines the psychological aspects of investing, including emotional biases, herd behavior, and overreaction to news.

  4. Value Investing Principles: Introduces and elaborates on the core principles of value investing, focusing on intrinsic value and margin of safety.

  5. Risk Perception: Explores how investors perceive and react to risk, and the implications of these perceptions on investment choices.

  6. Market Inefficiencies: Discusses how investor psychology leads to market inefficiencies and opportunities for value investors.

  7. Long-Term Perspective: Emphasizes the importance of adopting a long-term perspective in investing, despite short-term market fluctuations.

  8. Decision-Making Strategies: Provides strategies to mitigate the impact of behavioral biases on investment decisions, aiming for more rational choices.

  9. Impact of Information: Explores how the availability and interpretation of information affect investor behavior and market dynamics.

  10. Investor Education: Advocates for investor education as a means to understand behavioral biases and make more informed investment decisions.

Language English
ISBN-10 0070077630
ISBN-13 9780070077638
No of pages 319
Font Size Medium
Book Publisher Tata Mcgraw-Hill
Published Date 01 Jul 2017

About Author

Author : Parag Parikh

2 Books

Related Books