Weekend Reads for Financial Advisors: Brains, Behavioral Biases, and Bitcoins (and Taxes)

Categories: Behavioral Finance, Private Wealth Management
Weekend Reading

When last did you think about your brain? An odd question, perhaps. But given that this is the organ that controls thought, memory, emotion, touch, motor skills, vision, respirations, temperature, hunger, and every process that regulates our body, we spend surprisingly little time noodling over our gray matter.

Recently I’ve been thinking more about my brain. What got me started was an excerpt on “fear” from Jason Zweig’s book Your Money and Your Brain. My colleague Jason Voss, CFA, also wrote a blog post about this chapter: “Overcoming Anxiety Is Key to Investment Success” and Joe Nocera of the New York Times did a terrific column on the themes of the book: “Can We Turn Off Our Emotions When Investing?” It turns out “the brain is not an optimal tool for making financial decisions,” because the part of our brain that tells us to act like rational investors tends to be overtaken by more powerful emotional impulses. This has profound implications for investing behavior and financial decision-making.

So, with that in mind, here are some articles and/or resources that may be of interest, beginning with a few on behavioral finance.

Behavioral Finance/Neuroscience

Investing

Practice Management / Firm Dynamics

  • At your workplace, are you a giver, a taker, or a matcher? If you’re a giver, chances are you will be the one most likely to get ahead, according to the article “Is Giving the Secret to Getting Ahead?” The piece explores the work of organizational psychologist Adam Grant, author of the recently published book Give and Take: A Revolutionary Approach to Success, which “incorporates scores of studies and personal case histories that suggest the benefits of an attitude of extreme giving at work.” (New York Times Magazine)

Bitcoins

Eldercare

Taxes/Budget for Fiscal Year 2014

And Now For Something Completely Different


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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