I was cleaning out some files and came across the fantastic James Montier PDF “The Seven Sins of Fund Management“. (If you want the Cliff’s note version check out his recent book The Little Book of Behavioral Investing.) There was a great quote from Lao Tzu, a 6th century BC poet, “Those who have knowledge. Over a decade ago, James Montier penned a white paper titled Seven Sins of Fund Management. It covers the most common behavioural biases among investors and makes for a timeless, enlightening read. The full report can be found here and is 105 pages long, so a brief summary is in order.
![James Montier Seven Sins Of Fund Management James Montier Seven Sins Of Fund Management](https://d2wsh2n0xua73e.cloudfront.net/wp-content/uploads/2015/12/1107266-thumb.jpg)
Behavioural Investing: A Practitioner’s Guide to Applying Behavioural Finance explores the biases we face, the way in which they show up in the investment process, and urges readers to adopt an empirically based sceptical approach to investing. This book is unique in combining insights from the field of applied psychology with a through understanding of the investment problem. The content is practitioner focused throughout and will be essential reading for any investment professional looking to improve their investing behaviour to maximise returns. Key features include:
- The only book to cover the applications of behavioural finance
- An executive summary for every chapter with key points highlighted at the chapter start
- Information on the key behavioural biases of professional investors, including The seven sins of fund management, Investment myth busting, and The Tao of investing
- Practical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools
- Written by an internationally renowned expert in the field of behavioural finance