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