Investment Blunders of the Rich and Famous ... and What You Can Learn from Them

This is the eBook version of the printed book. If the print book includes a CD-ROM, this content is not included within the eBook version. We're all human - especially when we're investing. In Investment Blunders (of the Rich and Famous)... And What You Can Learn From Them, one of the world's leading experts on investor psychology deconstructs spectacular failures from the world's most prominent investors. They should have known better - but they invested with their hearts, not their brains. Chances are, you're making some of the same mistakes right now. John Nofsinger uncovers those mistakes so you can put your brain back in charge - while there's still time.

The most common investor mistakes — and how you can avoid them!

• Lessons from the spectacular failures of the world's most prominent investors!
• Practical techniques for avoiding overconfidence, hubris, greed, shortsightedness, and other investment blunders.
• By John Nofsinger, author of Investment Madness: How Psychology Affects Your Investing...and What to Do About It.

Every investor — even the world's most prominent and respected investors — are subject to the foibles of human psychology. Now, John Nofsinger, identifies the most common investor mistakes through the prism of the world's most public investment catastrophes. Using other people's money and other people's disasters, Investment Blunders teaches a wide range of critical lessons every investor must learn. John Nofsinger shows how to avoid the overconfidence displayed by John Meriwether and David Mullins, and by Nobel laureates Myron Scholes and Robert Merton, the founders of the failed Long Term Capital Management hedge fund. He demonstrates how to avoid the hubris that nearly destroyed KKR in its bidding war over RJR Nabisco; how to identify and control the greed that sank Michael Milken and many of his contemporaries; and how to keep sight of the fundamentals, avoiding the disastrous investments that led to the 1980s' S&L crisis. Read each Blunder, and you will learn of a common error that you can avoid in the future.

John Nofsinger is a finance professor at Washington State University. Together with Richard W. Sias, his 1997 paper Herding and Feedback Trading by Institutional Investors was awarded "Best of theBest" and "Best Paper in Investments" by the Financial Management Association. He has also done advanced research for the New York Stock Exchange and the Association for Investment Management and Research. He has published Investment Madness: How Psychology Affects Your Investing...and What to Do About It, with Financial Times Prentice Hall, and best-selling textbook, The Psychology of Investing, with Prentice Hall.

The most common investor mistakes -- and how you can avoid them! -- Lessons from the spectacular failures of the world's most prominent investors! -- Practical techniques for avoiding overconfidence, hubris, greed, shortsightedness, and other investment blunders. Every investor -- even the world's most prominent and respected investors -- are subject to the foibles of human psychology. Now, John Nofsinger, identifies the most common investor mistakes through the prism of the world's most public investment catastrophes. Using other people's money and other people's disasters, Investment Blunders teaches a wide range of critical lessons every investor must learn. John Nofsinger shows how to avoid the overconfidence displayed by John Meriwether and David Mullins, and by Nobel laureates Myron Scholes and Robert Merton, the founders of the failed Long Term Capital Management hedge fund. He demonstrates how to avoid the hubris that nearly destroyed KKR in its bidding war over RJR Nabisco; how to identify and control the greed that sank Michael Milken and many of his contemporaries; and how to keep sight of the fundamentals, avoiding the disastrous investments that led to the 1980s' S & L crisis. Read each Blunder, and you will learn of a common error that you can avoid in the future Identifies the widespread investment mistakes that are costing you money right now. Author shows you how to recognize overconfidence and greed in your decision making, avoid throwing good money after bad, and ensure that you have clear goals matched by a clear strategy.