Episode 52: Daniel Crosby: The Behavioral Investor & The Laws of Wealth
Please enjoy the episode by clicking the “play” button above.
Alternatively, listen from your preferred platform here.
I spent last summer reading three of Daniel Crosby’s book: The Behavioral Investor, The Laws of Wealth, You Are Not That Great – today, we spend an hour discussing some of the biggest lessons from his writing, work, and research – we learn what we can do to get out of our own way, and make better investment decisions.
Dr. Daniel Crosby is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets. Dr. Crosby's first book, Personal Benchmark: Integrating Behavioral Finance and Investment Management, was a New York Times bestseller. His second book, The Laws of Wealth, was named the best investment book of 2017 by the Axiom Business Book Awards and has been translated into 12 languages. His latest work, The Behavioral Investor, was Axiom's best investment book of 2019 and is a comprehensive look at the neurology, physiology and psychology of sound financial decision-making. When he's not decoding market psychology, Daniel is a father of 3, a fanatical follower of the St. Louis Cardinals, an explorer of the American South, and an amateur hot sauce chef.
We talk about:
1. Brain's Perception of Money: Brain's wiring in relation to valuing money, liquid happiness.
2. Impact of Early Investing Lessons: How early market experiences shape future investing decisions.
3. Crowd Behavior in Investing: Wisdom of the crowd vs. individual insights, and thinking for yourself.
4. Unique Investor Behavior: The human tendency to fit in vs. the need to stand out in investing & a rat experiment
5. Importance of Slowing down reflexive responses for better financial outcomes.
6. Tropical Disease vs. Wealth Habits: Shocking comparison and the lessons derived.
7. Fallibility in Investment Behavior: Human fallibility as both an advantage and an impediment in wealth accumulation.
8. Role of Investment Advisors: Value of the right advisor in preventing major mistakes & The long-term benefits of seeking expert advice.
9. Performance Measurement: Comparing performance to personal needs vs. market indices.
---- Crisis Investing: 100 Essays - My new book.
To get regular updates and bonus content, please sign-up for my substack: https://bogumilbaranowski.substack.com/
Follow me on Twitter: https://twitter.com/bogumil_nyc
Learn more about Bogumil Baranowski
NEVER INVESTMENT ADVICE.
IMPORTANT: As a reminder, the remarks in this interview represent the views, opinions, and experiences of the participants and are based upon information they believe to be reliable; however, neither my firm nor I have independently verified all such remarks. The content of this podcast is for general, informational purposes, and so are the opinions of a member of a registered investment adviser and guests of the show. This podcast does not constitute a recommendation to buy or sell any specific security or financial instruments or provide investment advice or service. Past performance is not indicative of future results.