The Seven Deadly Sins of Investing: How to Conquer Your Worst Impulses and Save Your Financial Future [Hardcover]

Maury Fertig (Author)

Book Description

Publication Date: July 17, 2006

During his successful 17-year career at Salomon Brothers, Maury Fertig witnessed many smart people making very bad investment decisions - all because they let their emotions influence their judgment. He realised that whether the result of ego, competitiveness, or just plain laziness, the behaviors that warp people's ability to invest wisely are rooted in seven common and recognisable human weaknesses. In "The Seven Deadly Sins of Investing", Fertig has created an investing philosophy (and several practical and powerful strategies) to help absolve "sinners" of their financial transgressions.

Editorial Reviews

Review

Humberto Cruz, nationally syndicated personal finance columnist: "Fertig does a pretty thorough and entertaining job of identifying and illustrating typical investor mistakes and suggesting ways to avoid them...I particularly recommend the book to anybody who thinks picking stocks is child's play or who feels tempted to chase after the next investment fad."

“...by focusing on the seven deadly sins, Mr. Fertig has provided a checklist of what not to do when it comes to investing. And anything that may keep you from losing money is a good thing indeed.”

-New York Times

“...Mr. Fertig has provided a checklist of what not to do when it comes to investing... a good thing indeed.”

-New York Times

Book Description

"Are you a sinner when it comes to investing? During his long and successful career at Salomon Brothers, Maury Fertig witnessed many smart people making very bad investment decisions -- all because they let their emotions influence their judgment. He realized that whether the result of ego, competitiveness, or just plain laziness, these dire behaviors were rooted in seven common and recognizable human weaknesses:

* Envy: focusing on the success of others

* Vanity, or Pride: an unwillingness to take advice

* Lust: an infatuation with an investment, despite warnings that it is not sound

* Avarice: a tendency to hold onto a stock for too long, decreasing its return

* Anger, or Wrath: irrational behavior that sacrifices steady progress for a quick hit

* Gluttony: compulsive and excessive investing

* Sloth: ignoring finances altogether

The Seven Deadly Sins of Investing helps readers recognize their investing vices, and offers practical strategies to help them correct the error of their ways. Illustrated by real stories about real investors who have given in to temptation, the book provides solid financial advice for avoiding common pitfalls and staying on the path to “salvation” -- and wealth."

See all Editorial Reviews

Product Details

• Reading level: Ages 17 and up
  
• Hardcover: 224 pages
• Publisher: AMACOM (July 17, 2006)
• Language: English
• ISBN-10: 0814408745
• ISBN-13: 978-0814408742
• Product Dimensions: 9.1 x 6.1 x 1 inches
• Shipping Weight: 1 pounds
• Average Customer Review: 4.9 out of 5 stars  See all reviews (18 customer reviews)
• Amazon Best Sellers Rank: #1,335,429 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

8 of 8 people found the following review helpful:

5.0 out of 5 stars Critically Important Book for Investors, August 24, 2006

By 

L. Masonson (Monroe, New York USA) - See all my reviews
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This review is from: The Seven Deadly Sins of Investing: How to Conquer Your Worst Impulses and Save Your Financial Future (Hardcover)

This is an unusual book on investing, as it provides neither advice on investing nor investment strategies. Instead it focuses solely on explaining the negative impact of specific investor emotional traits on investment performance. It is written in an easy-to-understand, friendly, conversational style.

Specifically, Fertig covers seven psychological factors that result in causing investors to perform poorly. These factors include: envy, pride, lust, greed, anger, gluttony and sloth. He covers these topics one at a time, and includes interesting personal stories and examples that clearly illustrate his key points.

From my own investment experience spanning 49 years, I can attest to the critical importance of keeping your emotional behavior and psychological weaknesses in check, otherwise investment results suffer. Too many investors buy at the top and sell at the bottom, because they were never strong enough to overcome their weaknesses. Hopefully, by reading this enjoyable book and thinking about their own situations and need for discipline, and taking corrective ACTION, the reader will improve his/her investment performance.

We live in an age of instant gratification, instant messaging, and an overabundance of stock market commentary from the TV talking heads and media outlets. All this extraneous information (not knowledge) negatively impacts investors thought processes. Investing is not a game and should be considered a place to have fun. Investors need to get control of their internal weaknesses and realize what factors need to be overcome to be successful. This book fills that need very well. Along with books on charting and stock market strategies, this book is part of the trilogy of books that potential investors need to read to become successful.

5 of 5 people found the following review helpful:

5.0 out of 5 stars We are our own worst enemy., January 27, 2008

By 

Eva Sawicka (Baltimore, MD USA) - See all my reviews
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This review is from: The Seven Deadly Sins of Investing: How to Conquer Your Worst Impulses and Save Your Financial Future (Hardcover)

Making money in the stock market would be a lot easier if we did not succumb to the whim of our emotions. In order to beat the stock market, you must assess your weaknesses and overcome these emotional traps: envy, pride, lust, avarice, anger, gluttony, and laziness. The author explains how all of us are sinners, but some of us can be saved.

Simply saying that you will avoid making these mistakes is easy but doing so when under the pressure that the market inflicts is much more difficult. Every trader needs to go through the list of emotional breakdowns above and think about how they react to these emotions. Write down the mistakes you make because of fear or greed. Think about times when you have been reckless in your trading and write down a plan to overcome them.

Before you make another trade, create a plan to overcome the seven deadly sins of trading. Doing so will do more to your profit than anything else you can do.

5 of 5 people found the following review helpful:

5.0 out of 5 stars BSS, June 21, 2006

By 

B. Schneider (Chicago, IL USA) - See all my reviews
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This review is from: The Seven Deadly Sins of Investing: How to Conquer Your Worst Impulses and Save Your Financial Future (Hardcover)

A very readable book. I found myself identifying past mistakes with all the sins at some point or another in my life. I wish I had this book 15 years ago -- I could have avoided many bad apples along the path.