Investment Blunders of the Rich and Famous-- and what You Can Learn from Them

Front Cover
FT Press, 2002 - Business & Economics - 302 pages
0 Reviews
Reviews aren't verified, but Google checks for and removes fake content when it's identified
Every investor -- even the world's most prominent and respected investors -- are subject to the foibles of human psychology. Now, John Nofsinger, identifies the most common investor mistakes through the prism of the world's most public investment catastrophes. Using other people's money and other people's disasters, Investment Blunders teaches a wide range of critical lessons every investor must learn. John Nofsinger shows how to avoid the overconfidence displayed by John Meriwether and David Mullins, and by Nobel laureates Myron Scholes and Robert Merton, the founders of the failed Long Term Capital Management hedge fund. He demonstrates how to avoid the hubris that nearly destroyed KKR in its bidding war over RJR Nabisco; how to identify and control the greed that sank Michael Milken and many of his contemporaries; and how to keep sight of the fundamentals, avoiding the disastrous investments that led to the 1980s' S&L crisis. Read each Blunder, and you will learn of a common error that you can avoid in the future.
 

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

CHAPTER 1 Other Peoples Problems
1
PART 1 SelfInflicted Common Problems
11
CHAPTER 2 Behavioral Finance
13
CHAPTER 3 Patterns and Predictions
29
CHAPTER 4 Mood Optimism and Investing
47
CHAPTER 5 Profits from the Prophets?
61
CHAPTER 6 Foolish Risks
83
PART 2 Trying to Beat the Market
101
CHAPTER 11 Get Rich Quick
175
PART 3 Colossal Blunders
191
CHAPTER 12 The Eggheads Crack
193
CHAPTER 13 An Orange Squeezed
213
CHAPTER 14 Betting the Bank
231
CHAPTER 15 Invest to Win and Avoid the Blunders
251
APPENDIX Exchange Traded Funds
275
INDEX
289

CHAPTER 7 Timing the Market
103
Performance
123
Carrying the Load
143
CHAPTER 10 The Social Investor
161
Inside Back Cover
303
Back Cover
304
Copyright

Common terms and phrases

Popular passages

Page viii - Restoring Confidence in America's Companies John R. Nofsinger Investment Blunders (of the Rich and Famous)... And What You Can Learn from Them John R. Nofsinger Investment Madness: How Psychology Affects Your Investing. . .And What to Do About It H.

About the author (2002)

JOHN R. NOFSINGER is a finance professor, Department of Finance, Insurance, and Real Estate at Washington State University and one of the world's leading experts in investor psychology and behavioral finance.

Written with Richard W. Sias, Nofsinger's 1997 paper "Herding and Feedback Trading by Institutional Investors" was awarded "Best of the Best" and "Best Paper in Investments" by the Financial Management Association. He has also done advanced research for the New York Stock Exchange and the Association for Investment Management and Research.

He has been interviewed and quoted in financial media including The Wall Street Journal, Fortune, BusinessWeek, SmartMoney, Bloomberg, and the cable news network CNBC, as well as other media from the Washington Post to Wired.com.

Nofsinger holds a Ph.D. in Finance from Washington State University and taught for five years at Marquette University. His Financial Times Prentice Hall books include Investment Madness: How Psychology Affects Your Investing...and What to Do About It and The Psychology of Investing.

Bibliographic information