Meir Statman is Glenn Klimek Professor of Finance at the Leavey School of Business at Santa Clara University and visiting professor at Tilburg University in the Netherlands. At the Annual Conference, he will be speaking on What Investors Really Want: Lessons from Behavioral Finance.
Professor Statman’s latest book was recently discussed at Barrons Online (“Investing’s X Factor,” towards the bottom of the page), in a review written by Martin Fridson, CEO of Fridson Investment Advisers and member of the editorial board of the Financial Analysts Journal.
According to Mr. Fridson, one of the notable feature of Professor Statman’s book (also titled What Investors Really Want) is the way it avoids a pitfall common to most other books on the topic — it does not attempt to use behavioral finance to outline specific trading strategies:
“What Investors Really Want,” in contrast, helps readers make better financial choices, not limited to investing. Statman says that the winning bids on eBay auctions typically exceed the fixed prices advertised for the same products on the Internet. Sometimes, it pays to suppress the competitive urge.
The book also touches on some of the lesser-known biochemical influences on purchasing decisions:
Another tip: Eating a traditional Thanksgiving dinner helps in avoiding impulse purchases on Black Friday. The amino acid tryptophan enhances self-control. Turkey is rich in it, and the carbohydrates in mashed potatoes help concentrate it in the body.