Behavioral Finance and Wealth Management: How to Build Optimal Portfolios That Account for Investor Biases

Michael Pompian

Wiley, Mar 31, 2006 - Business & Economics - 320 pages

"Pompian is handing you the magic book, the one that reveals your behavioral flaws and shows you how to avoid them. The tricks to success are here. Read and do not stop until you are one of very few magicians."
—Arnold S. Wood, President and Chief Executive Officer, Martingale Asset Management

Fear and greed drive markets, as well as good and bad investment decision-making. In Behavioral Finance and Wealth Management, financial expert Michael Pompian shows you, whether you're an investor or a financial advisor, how to make better investment decisions by employing behavioral finance research. Pompian takes a practical approach to the science of behavioral finance and puts it to use in the real world. He reveals 20 of the most prominent individual investor biases and helps you properly modify your asset allocation decisions based on the latest research on behavioral anomalies of individual investors.

What people are saying

Review: Behavioral Finance and Wealth Management: How to Build Optimal Portfolios That Account for Investor Biases

User Review  - getAbstract - Goodreads

This excellent, practical guide helps you apply behavioral finance information to your personal wealth management. Though Michael M. Pompian chiefly addresses a readership of professional investment ...

Review: Behavioral Finance and Wealth Management: How to Build Optimal Portfolios That Account for Investor Biases

User Review  - Mike - Goodreads

So far, 5 stars. Excellent list of cognitive biases that affect investors, ways you can steer clear, and even ways to take advantage of the suckers out there who don't steer clear. Pure magic.

About the author

MICHAEL M. POMPIAN, CFA, CFP, is the Director of the Private Wealth Practice at Hammond Associates, an investment consulting firm serving institutional and private wealth clients. Prior to joining Hammond Associates, he was a wealth management advisor with Merrill Lynch and PNC Private Bank, and served as an investment advisor to a family office. Pompian holds the Chartered Financial Analyst (CFA) designation, is a Certified Financial Planner (CFP), and a Certified Trust Financial Advisor (CTFA). He is also a member of the CFA Institute (formerly AIMR) and the New York Society of Securities Analysts (NYSSA). He holds a BS in management from the University of New Hampshire and an MBA in finance from Tulane University. Pompian is a regular speaker on the subject of behavioral finance and has published several articles on the subject. He is married with two sons. He can be reached at [e-mail]

Bibliographic information

• Title: Behavioral Finance and Wealth Management: How to Build Optimal Portfolios That Account for Investor Biases; Volume 318 of Wiley Finance
• Author: Michael Pompian
• Publisher: Wiley, 2006
• ISBN: 0471914460, 9780471914464
• Length: 320 pages
• Subjects: Business & Economics / Investments & Securities / General