3 of 4 people found the following review helpful
NOW I understand Behavioral Economics....,
This review is from: Snap Judgment: When to Trust Your Instincts, When to Ignore Them, and How to Avoid Making Big Mistakes with Your Money (Hardcover)
I really enjoyed this book. I never knew it could be such fun to learn about finance or that it could be easy to master complicated ideas. Adler breaks down complex concepts into their simplest parts so that even a non-financial type (like me!) now understands behavioral economics. As a result, I view my financial decisions in a completely new way and will never look at a stock or bond the same way again. Or at the way I make a decision. He shows how intuition and analytic reasoning can conflict when making decisions (and can lead us to make the wrong one). Adler writes clearly, in a lively conversational tone. He makes it fun to learn by interviewing experts ranging from Nobel Laureate economists to gambling casino owners. (I particularly enjoyed the example of mathematical advice from an English horse racing bookie -- now a Professor at the Wharton School.) The book is very well researched, but Adler uses his own words, too, to write a fresh view of the world of personal finance/stocks/bonds/insurance, etc., and what happens when they collide with our inner psychological world. I recommend this book to anyone interested in learning about how they REALLY make decisions and how they can then use that knowledge to invest more profitably. The frequent short quizzes -- devised by financial or psychological experts -- were fun to take, and the results were surprising. This book could be subtitled "The Book of Surprises." For instance, I never knew before that horse racing, tennis, football and mutual funds had so much in common, but I sure know it now. Truly a great read, highly recommended to laymen and experts alike.