Navigating the Investment Minefield
A Practical Guide to Avoiding Mistakes, Biases, and Traps
1st Edition
Published on 12. April 2019
216 pages
978-1-78769-053-0 (ISBN)
Description
When you think about investing, what words come to mind? Overwhelming? Intimidating? Scary?
Investors face a vast array of investment options vying for their business. They are aware that some of those providing these "opportunities" seek to take advantage of them. And although most investors realize they are fallible, they often have no clear idea why or what they can do about it. So what chance do less savvy investors have navigating the investment minefield and emerging unscathed?
The answer is not much-unless they recognize the pitfalls along the way. In this book, H. Kent Baker and Vesa Puttonen show new investors how to avoid rash financial decisions and basic investing sins. They help them to recognize and avoid common investing mistakes, behavioral biases, and traps that can affect sound judgment and reduce wealth. Ultimately, they explain how to separate investment fads from time-tested investment principles-a task that is easier said than done, but that is well worth the effort.
Navigating the Investment Minefield is essential reading for novice investors, and it is of keen interest to more seasoned investors seeking a refresher course on the most basic, time-honored truths of wealth management.
Investors face a vast array of investment options vying for their business. They are aware that some of those providing these "opportunities" seek to take advantage of them. And although most investors realize they are fallible, they often have no clear idea why or what they can do about it. So what chance do less savvy investors have navigating the investment minefield and emerging unscathed?
The answer is not much-unless they recognize the pitfalls along the way. In this book, H. Kent Baker and Vesa Puttonen show new investors how to avoid rash financial decisions and basic investing sins. They help them to recognize and avoid common investing mistakes, behavioral biases, and traps that can affect sound judgment and reduce wealth. Ultimately, they explain how to separate investment fads from time-tested investment principles-a task that is easier said than done, but that is well worth the effort.
Navigating the Investment Minefield is essential reading for novice investors, and it is of keen interest to more seasoned investors seeking a refresher course on the most basic, time-honored truths of wealth management.
Reviews / Votes
The practical aspects of investments are still a void in our academic literature. Professors Baker and Puttonen have written this excellent and brilliant book to help introduce and elaborate the practical dimensions of investments. This book is a must read for any investor, finance practitioner, and business student. Frequent and common mistakes in investments and understanding risky products, among other topics, are well explored. Enjoy reading this book for developing better insights into the world of investment and wiser strategies. I strongly recommend this important book. -- Dr. Ehsan Nikbakht, CFA Masterfully written, Baker and Puttonen identify the allure of various ideas that so easily entice inexperienced investors away from making wise decisions. Sprinkling in quotes from corporate executives, entrepreneurs, journalists and academics, the authors provide sage advice on how to avoid disastrous consequences when maneuvering through troubled investment waters -- giving even the most timid of sailors the certainty that they will chart the best course for use of their treasure! -- Tom Barkley, PhD, CFA, CAIA * Syracuse University * This guide helps nonprofessional investors avoid common mistakes, behavioral biases, and investment traps. It discusses the importance of becoming financially literate about the investment world, common investing mistakes, behavioral biases that can be detrimental to wealth, and eight investment traps, with real-life examples from around the world, and how to mitigate them: overpaying for products and services, becoming a victim of investment frauds and scams, misrepresenting risky products as safe, investing in complex products, relying on unsupported evidence, having unrealistic return expectations, engaging in gambling disguised as investing, and falling for mutual fund traps. -- Annotation (c)2019 * (protoview.com) *More details
Language
English
Place of publication
Bingley
United Kingdom
Target group
Professional and scholarly
File size
1,02 MB
ISBN-13
978-1-78769-053-0 (9781787690530)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Persons
H. Kent Baker, CFA, CMA, is an award-winning author/editor of 30 books including Investment Traps Exposed and Investor Behavior: The Psychology of Financial Planning and Investing. With more than 40 years of investment experience, he offers a practical approach to helping investors achieve their financial goals. He has consulting and training experience with more than 100 organizations. Professor Baker has helped train thousands of individuals to enter the investment professions. He is University Professor of Finance in the Kogod School of Business at American University and has eight earned degrees including three doctorates. Vesa Puttonen has extensive investment experience and has worked as Senior Vice President at the Helsinki Stock Exchange and as Managing Director at Conventum Asset Management (Helsinki). He has been a member of various boards of directors and investment committees and served as the Chairman of the Board, Finnish Hockey League. Professor Puttonen is Professor of Finance at Aalto University's School of Business and a faculty member of MBA Programs in Helsinki, Hong Kong, Singapore, Poland, China, Iran, Taiwan and South Korea. He has published numerous books and articles in the areas of finance and investments.
Content
Introduction Chapter 1. Navigating the Investment Minefield
Chapter 2. Avoiding Common Investing Mistakes
Chapter 3. Overcoming Your Behavioral Biases
Chapter 4. Trap 1: Overpaying for Products and Services
Chapter 5. Trap 2: Becoming a Victim of Investment Fraud
Chapter 6. Trap 3: Misrepresenting Risky Products as Safe
Chapter 7. Trap 4: Investing in Complex Products
Chapter 8. Trap 5: Relying on Unsupported Evidence
Chapter 9. Trap 6: Having Unrealistic Return Expectations
Chapter 10. Trap 7: Engaging in Gambling Disguised as Investing
Chapter 11. Trap 8: Falling for Mutual Fund Traps
Chapter 2. Avoiding Common Investing Mistakes
Chapter 3. Overcoming Your Behavioral Biases
Chapter 4. Trap 1: Overpaying for Products and Services
Chapter 5. Trap 2: Becoming a Victim of Investment Fraud
Chapter 6. Trap 3: Misrepresenting Risky Products as Safe
Chapter 7. Trap 4: Investing in Complex Products
Chapter 8. Trap 5: Relying on Unsupported Evidence
Chapter 9. Trap 6: Having Unrealistic Return Expectations
Chapter 10. Trap 7: Engaging in Gambling Disguised as Investing
Chapter 11. Trap 8: Falling for Mutual Fund Traps
