Ideas

The Best Books on Behavioral Finance and Behavioral Economics

It seems as though I get asked just about every week, "If I want to learn more about behavioral finance, where do I start?" So, in an effort to give a more comprehensive answer to that question (and save myself some time), I've compiled the list below. Happy reading!

The Bible(s):

The Laws of Wealth - Crosby 

Thinking, Fast and Slow - Kahneman

Irrational Exuberance - Shiller

Nudge - Thaler and Sunstein

Antifragile - Taleb

Introduction to Behavioral Finance:

Why Smart People Make Big Money Mistakes - Belsky and Gilovich

The Little Book of Behavioral Finance - Montier 

Predictably Irrational - Ariely 

Misbehaving - Thaler

Animal Spirits - Akerlof and Shiller

History of Finance:

This Time is Different - Reinhart and Rogoff

A Short History of Financial Euphoria - Galbraith

Biology + Psychology + Investing:

The Hour Between Dog and Wolf - Coates 

Goals-Based Investing:

Personal Benchmark - Crosby and Widger

Risk:

Against the Gods - Bernstein

Decision Making:

The Checklist Manifesto - Gawande

The Investor's Paradox - Portnoy

The Paradox of Choice - Schwartz

The Power of Fifty Bits - Nease

Think Twice - Mauboussin

Behavioral Investing:

Quantitative Value - Gray and Carlisle

Behavioral Investment Management - Davies and Servigny

Value Investing - Montier 

Behavioral Portfolio Management - C. Thomas Howard

The Most Important Thing - Marks

The Little Book That Still Beats the Market - Greenblatt

A Wealth of Common Sense - Carlson

Dual Momentum - Antonacci 

What Works on Wall Street - O'Shaughnessy

Contrarian Investment Strategies - Dreman

The Intelligent Investor - Graham 

You Can Be a Stock Market Genius - Greenblatt

A Random Walk Down Wall Street - Malkiel

Probability:

The Signal and the Noise - Silver

Fooled by Randomness - Taleb

The Black Swan - Taleb

The Drunkard's Walk - Mlodinow

Women + Investing:

Women of the Street - Jones 

Warren Buffett Invest Like a Girl: And You Should, Too - Lofton

Best Expose:

Backstage Wall Street - Brown 

Introducing My New Book - The Laws of Wealth

Friends, 

Sometimes it felt as though this day would never come, but my new book The Laws of Wealth, is finally out. You can buy it here and I hope that you'll leave a review once you have completed the book. It's my belief that this book will provide investors and financial professionals with all of the tools they need to manage their behavior and their wealth. It's an audacious goal but one that I think is realized in a book of which I am very proud. 

You can read a fair and thorough review of the book HERE and check out a brief introduction below: 

"From New York Times and USA Today bestselling author, Dr Daniel Crosby, comes the behavioral finance book all investors have been waiting for.

In The Laws of Wealth, psychologist and behavioral finance expert Daniel Crosby offers an accessible and applied take on a discipline that has long tended toward theory at the expense of the practical. Readers are treated to real, actionable guidance as the promise of behavioral finance is realised and practical applications for everyday investors are delivered.

Crosby presents a framework of timeless principles for managing your behavior and your investing process. He begins by outlining ten rules that are the hallmarks of good investor behavior, including 'Forecasting is for Weathermen' and 'If You're Excited, It's Probably a Bad Idea'. He then goes on to introduce a unique new taxonomy of behavioral investment risk that will enable investors and academics alike to understand behavioral risk in a newly coherent and complete way.

From here, attention turns to the four ways in which behavioral risk can be combatted and the five equity selection methods investors should harness to take advantage of behaviorally-induced opportunities in the stock market. Throughout, readers are treated to anecdotes, research and graphics that illustrate the lessons in memorable ways. And in highly valuable 'What now?' summaries at the end of each chapter, Crosby provides clear, concise direction on what investors should think, ask and do to benefit from the behavioral research.

Dr. Crosby's training as a clinical psychologist and work as an asset manager provide a unique vantage and result in a book that breaks new ground in behavioral finance."