To the layman, financial investing can look extremely complicated. And while financial markets are certainly complex, the rules governing sound investment are actually pretty simple. The problem most people have is following those rules. It’s all about behavior.
My guest today is a behavioral finance expert who has recently published a book crammed with practical advice to help investors from all walks of life have better investing behavior. His name is Daniel Crosby and his book is The Laws of Wealth: Psychology and the Secret to Investing Success. Today on the show, we discuss the psychological biases we have that cause us to make stupid investing mistakes and what we can do to overcome them, why index funds aren’t exactly “passive investments,” as well as how behavioral finance principles can help you live a happier and more flourishing life.
- What behavioral finance is
- Why you’re not that great
- Why the self-esteem movement made us miserable
- Why special people are quitters
- Why special people are cheaters
- The hard way to genuine self-esteem
- Why the key to investment success is behavior management
- The psychological biases that cause us to make poor investing decisions
- What “Goals Based Investing” is
- Why index funds aren’t exactly a completely passive form of investment
- Why even toddlers need to memento mori
- You’re Not That Great
- Daniel’s TEDx Talk
- My podcast interview with Carol Dweck about the growth mindset
- Bernie Madoff
- Contingent self-esteem
- Ben Graham and The Intelligent Investor
- Affect heuristic
- S&P 500
- The Black Swan by Nassim Taleb
- Know-Nothing Investing: Index Funds for Beginners
- The Power of Checklists
- Everyone You Love Will Die
- Memento mori
- My podcast about what dying is like with Barbara Karnes
If you’re looking to learn more about investing, but don’t know where to start, pick up a copy of Daniel’s book The Laws of Wealth. He not only lays out simple, easy-to-follow rules to ensure that you manage your investing behavior wisely, he also gets into the nitty-gritty of investing. For more information about Daniel’s investment philosophy and services, check out NocturneCapital.com. Check out his other books as well: You’re Not That Great and his memento mori reminder for toddlers, Everyone You Love Will Die.
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Last updated: August 4, 2016