Investment Madness is an interesting title for an investment book, what lies behind it?
JRN: For the last several decades, finance theory and practice has evolved under the assumption that people make rational decisions to increase their wealth. However, people frequently let emotions influence their decisions in non-financial matters. Why wouldnt emotions invade investment decision as well? Indeed, they do! My book illustrates what happens to your wealth if your psychological biases and emotions affect your investment decisions. PE: Who did you have in mind when you wrote this book, and how might it help them? JRN: Investment Madness is written for the individual investor. The book assumes the reader has no formal education in investments. Each psychological bias and emotion is first shown through common, everyday activities. Then, the impact on investing is discussed. Finally, the investing problem is illustrated with true investor stories, academic studies, and New Yorker magazine cartoons. The book is written to be as entertaining as it is educational. After reading t
