10 October 2012

Meir Statman on What Investors Really Want: Lessons from Behavioral Finance (Video)

Posted In: Behavioral Finance, Private Wealth Management

It is impossible to separate the utilitarian, expressive, and emotional benefits of investing, according to Meir Statman, a well-known expert of behavioral finance — and when we ignore the expressive and emotional benefits, we lose useful insights into what investors really want.

Statman, the Glenn Klimek Professor of Finance at Santa Clara University and a visiting professor at Tilburg University, in the Netherlands, spoke to an attentive audience of investment professionals at a sold-out continuing education event organized by the CFA Society of the UK in London last week. Much of Statman’s talk drew from his recent book, What Investors Really Want: Know What Drives Investor Behavior and Make Smarter Financial Decisions, as well as his award-winning research.

Breakdown of the Meir Statman’s presentation:

Problems with utilitarian rationality, and explanation of expressive and emotional benefits — 00:01 to 15:22
Overview of difference between standard finance; three key lessons for investors; benefits of diversification; and problems with market timing — 15:23 to 29:41
Behavioural mistakes, cognitive errors of investors — 29:42 to 44:03
Question and answer session — 44:04 to end

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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About the Author(s)

Usman Hayat, CFA

Usman Hayat, CFA, writes about sustainable, responsible, and impact investing and Islamic finance. He is the lead author of "Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals;" the literature review, "Islamic Finance: Ethics, Concepts, Practice;" and the research report "Sustainable, Responsible, and Impact Investing and Islamic Finance: Similarities and Differences." He is interested in online learning and has directed three e-courses for CFA Institute: "ESG-100," "Islamic Finance Quiz," and "Residual Income Equity Valuation." The other topics he writes about are macroeconomics and behavioral finance. He has experience working in securities regulation and as an independent consultant. His qualifications include the CFA charter, the FRM designation, an MBA, and an MA in development economics. He has served as a content director at CFA Institute. He is a former executive director at the Securities and Exchange Commission of Pakistan (SECP) and former CEO of the Audit Oversight Board (Pakistan). His personal interests include reading and hiking.

4 thoughts on “Meir Statman on What Investors Really Want: Lessons from Behavioral Finance (Video)”

One Flew Over says:

10 October 2012 at 09:58

Utterly wonderful and inspiring presentation, please share MORE.

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GUNASEGARAN says:

1 March 2013 at 00:09

Hi….Usman

Let me Thank You for all your effrot in bringing in Meir Statman (Great Mentor of mine). This session is really awesome…. i am going to see this over and over again, so much of truth in it. Can i have the presentation slide Meir Statman was using in the video. Is it possible if you could introduce me to him via email. I am currently reading his book What Does Investor Really Want.

I am a licensed Financial Planner based in Malaysia, i am a student of Behavioral Finance, which is a critical component in advising client, if there is any other material on this subject i would like to go through. Looking forward to hear from you, thank you for your support.

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Jones sabo you adopt a step from the cold weather really com says:

13 April 2013 at 08:06

Fantastic site. Plenty of useful info here. I am sending it to some buddies ans also sharing in delicious. And of course, thank you for your effort!

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