Book Review: The Laws of Wealth: Psychology and The Secret to Investing Success by Dr Daniel Crosby

bookreview

26 Jun Book Review: The Laws of Wealth: Psychology and The Secret to Investing Success by Dr Daniel Crosby

Written by Dr. Daniel Crosby, a psychologist and behavioural finance expert, The Laws of Wealth provides an informative set of guidelines to avoid making some of the more illogical decisions investors frequently make. It’s not only a must-read for behavioural finance enthusiasts, but also an invaluable resource for all investors, who let emotions get in the way of their investment decisions

In addition to his many academic exploits, Cosby is the founder of Nocturne Capital, a behavioural finance-focused asset management firm that applies a strategy that seeks to exploit arbitrage opportunities stemming from emotionally-driven mispricing. Building upon the expertise of the firm, the book demonstrates how maintaining courageousness, clarity, conviction and consistency can deliver improved investment returns. And although claims of achieving ~2% improvement in investment returns need to be taken with a pinch of salt, the elimination of negative behavioural habits that impact investment decision will only provide positive experiences when investing in the future.

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