Laws of Wealth (paperback): Psychology and the secret to investing success

The Laws of Wealth is a behavioral finance book that presents three sets of real, actionable rules that investors can use to apply the lessons of behavioral finance. It includes ten rules that are the hallmarks of good investor behavior, the Four Cs of Rule-Based Investing, and the Five Ps of successful equity investing. An anecdotes, research, and graphics illustrate the lessons in memorable ways, and summaries at the end of each chapter provide clear, concise direction on what to think, ask, and do next to become a better investor.

Format: Paperback / softback
Length: 264 pages
Publication date: 30 March 2021
Publisher: Harriman House Publishing

The Laws of Wealth, a groundbreaking behavioral finance book by Dr. Daniel Crosby, is a must-read for investors seeking to apply the principles of behavioral finance to their investment strategies. In this comprehensive guide, Crosby presents three sets of real, actionable rules that investors can use to navigate the complex world of finance.

The book begins with ten essential rules that define good investor behavior. These rules include "Forecasting is for Weathermen," which emphasizes the limitations of predicting future market trends; "If You're Excited, It's Probably a Bad Idea," which advises against making investment decisions based on emotional impulses; and "Trouble is Opportunity," which suggests that unexpected events can present valuable investment opportunities.

From these foundational rules, Crosby delves into the Four Cs of Rule-Based Investing, which provide practical methods for combatting behavioral risk in investing. Consistency, Clarity, Courageousness, and Conviction are the key principles that guide investors in making informed decisions based on objective criteria rather than emotional biases. Crosby explains how these four factors can help investors build a well-diversified portfolio that withstands market fluctuations.

In addition to the Four Cs, Crosby introduces the Five Ps of successful equity investing. These five factors—Price, Properties, Pitfalls, People, and Push—help investors identify potential investment opportunities and make informed decisions about stock selection. Crosby provides valuable insights into each of these factors, including how to analyze financial statements, evaluate company management, and identify market trends.

Throughout the book, Crosby employs anecdotes, research, and graphics to illustrate the lessons in memorable ways. The use of real-world examples and case studies makes the information accessible and relatable, allowing investors to apply the principles to their own investment portfolios.

In highly valuable summaries at the end of each chapter, Crosby provides clear, concise direction on what to think, ask, and do next to become a better investor. He offers practical tips and strategies for developing a long-term investment plan, managing risk, and maximizing returns. Whether you are a seasoned investor or a novice looking to learn more about behavioral finance, The Laws of Wealth is an essential resource that will help you achieve your financial goals.

In conclusion, The Laws of Wealth is a groundbreaking behavioral finance book that offers valuable insights and practical rules for investors. By applying the principles of behavioral finance, investors can improve their decision-making processes, build more robust portfolios, and achieve better financial outcomes. This book is a must-read for anyone seeking to navigate the complex world of finance with confidence and success.

Weight: 362g
Dimension: 139 x 216 x 23 (mm)
ISBN-13: 9780857197832