This week I sat down with psychologist and behavioral finance expert, Dr. Daniel Crosby to discuss the behavioral side of investing.
Educated at Brigham Young and Emory Universities, Dr. Crosby helps organizations understand the intersection of mind and markets. Dr. Crosby’s first book, Personal Benchmark: Integrating Behavioral Finance and Investment Management, was a New York Times bestseller. His second book, The Laws of Wealth, was named the best investment book of 2017 by the Axiom Business Book Awards and has been translated into 5 languages.
His latest work, The Behavioral Investor, is a comprehensive look at the neurology, physiology and psychology of sound financial decision-making. When he is not consulting around market psychology, Daniel enjoys exploring the American South, fanatically following St. Louis Cardinals baseball, and spending time with his wife and three children.
HERE’S WHAT YOU’LL LEARN FROM THIS EPISODE:
- Why there’s such a resistance to the psychological side of money
- How our choices are affected by externalities
- How to identify and break the “herd mentality” in your investing
- What the best investment portfolio looks like for you
- Psychological tendencies that impact investment behavior
- The importance of diversifying out of what you are comfortable with
- Overcoming emotional connections to some of your investments
- The balance between educating and empathizing
- Questions to ask yourself about investments with emotional ties
- How to take a “pre-mortem” look at your portfolio
- The way your ego can derail your financial goals
- The view you should take with long-term investing
- How to prevent your emotional self from getting in the way of your investing self
- The psychological benefit of the “set it and forget it” mentality
- The lie many people tell themselves why they don’t need a financial planner
LINKS WE MENTIONED ON THE SHOW:
- The Behavioral Investor by Dr. Daniel Crosby
- Yuval Harari
- The Laws of Wealth by Dr. Daniel Crosby
- Work Your Wealth Podcast Episode 13 with Daniel Crosby
- The Standard Deviations podcast
GET SOCIAL WITH DANIEL AND LET HIM KNOW YOU HEARD ABOUT HIM HERE
ENJOY THE SHOW?