behavioral finance

113 Posts

Shareholder Value Maximization: The World’s Dumbest Idea?

Shareholder Value Maximization: The World Dumbest Idea?

Jame Montier made his case against shareholder value maximization during his closing keynote address at the 2014 European Investment Conference in London. In his characteristic iconoclastic style with a generous use of ironic humor, Montier labeled shareholder value maximization the way Jack Welch, the former CEO of GE, had once described it in 2009, as “the dumbest idea in the world.” Read more

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How to Win Investors’ Trust

How to Win Investors Trust

The combination of the financial crisis, events like the Libor scandal, and frequent news stories about financial organizations putting their interests above their clients, it is obvious why some investors may be concerned about the quality of advice and the motivations of their financial service providers. Read more

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Book Review: Investor Behavior

Investor Behavior: The Psychology of Financial Planning and Investing

This collection of articles by scholars in the field of behavioral finance encompasses a wide range of topics in the psychology of investing, focusing on academic work on financial planning. The book addresses a number of topics not usually covered in mainstream behavioral finance research. Read more

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The Place of Private Equity in a Diversified Investor’s Portfolio

Diversification

The recent Chapter 11 bankruptcy protection filing of Energy Future Holdings Corporation — once the subject of the world’s largest leveraged buyout, and now the biggest private equity bankruptcy since the demise of Chrysler — casts an unflattering light on the rarefied sphere of private equity investment. We take the opportunity to review recent research on the place of private equity in a diversified investor’s portfolio. Read more

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