Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics

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Summary: Jaded Prudence with money
Review: This is a very readable book on the new study of behavioral economics. Gilovich and Belski starts off where Peter L. Bernstein , in a chapter, ended in his book "Againts the Gods". Most of the book focuses on the work started by two Israeli Phycologists Tyverski and Khaneman. Although this book is about finance, it reads more like Caldiani's "Influence and Persuasion". There is a flavor of jadedness with thier exposition of the subject, and of course, they should. It gives a face to all the things I learned and is still learning in the years I've squandered my youth to the study of the Dismal science.

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Summary: Rich in information, hard to put down.
Review: Too many finance related books are filled with fancy stories and strategies, very interesting to read indeed but are the methods really applicable? From the beginning, this book is different. There's no 'what to do' list, only clear facts and the simple ideas are humbly presented, but they will change our way of thinking and finance. Get this book. It pays.

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Summary: Usable, sensible, indispensable!
Review: Unlike most books on investing and personal finance, which breathlessly offer the "secrets" of how to get rich quick, this book tells us the honest truth: It doesn't really matter very much which investments you pick unless you know how to control your own fear and greed. The only real key to investment success is self-control! Belsky & Gilovich don't offer a list of "best investments"--and that's a good thing, too, since all those lists are useless anyway. Instead they show how, by understanding and attacking your own limitations, you can combat your own mental shortcomings as an investor. They show us all how we can take simple, sensible steps to get rich slowly--the only way, after all, that it's even possible to get rich. You can learn more by reading this terrific book than you could learn by memorizing 49 wheelbarrows full of all the so-called investment books out there. It's great!

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Summary: Overated Book
Review: While some of the book is interesting it is more geared for the beginner in investing. A lot of the issues brought up are nothing more than common sense. I read it in a couple of days and felt let down by the simplistic approach to investing problems and the suggested solutions.

Rating:
Summary: Overated Book
Review: While some of the book is interesting it is more geared for the beginner in investing. A lot of the issues brought up are nothing more than common sense. I read it in a couple of days and felt let down by the simplistic approach to investing problems and the suggested solutions.

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Summary: BAD THINKING HABITS "STALL" YOUR ECONOMIC PROGRESS
Review: WHY SMART PEOPLE MAKE BIG MONEY MISTAKES is full of examples of decisions you might have to make. You get to choose an option, and then the authors tell you what you should have chosen. This is a great learning technique to bring home the lessons of this superb book. The authors point out several biases that most people have about money (such as it's okay to blow certain money, but not other money -- all money is really the same), themselves (people always overrate their abilities and get taken as a result), and circumstances (even people who got an A in statistics will usually misanalyze the risks they take). Since money is ultimately about math, a lot of your lifetime income and earning potential is lost in the process of following these biases. This book could make or save you a million dollars. You cannot afford not to read it. I was reminded of a parallel book on the same sorts of problems about bad thinking habits as they apply to work situations called "The 2,000 Percent Solution" which you should also read. If you use the lessons of both books, you will be enormously better off financially in your lifetime. It'll be like owning the casino, instead of losing money in it. Good luck!