Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing

Paperback (Print)
Buy Used
Buy Used from
(Save 41%)
Item is in good condition but packaging may have signs of shelf wear/aging or torn packaging.
Condition: Used – Good details
Used and New from Other Sellers
Used and New from Other Sellers
from $5.33
Usually ships in 1-2 business days
(Save 73%)
Other sellers (Paperback)
  • All (12) from $5.33   
  • New (6) from $17.36   
  • Used (6) from $5.33   


Even the best Wall Street investors make mistakes. No matter how savvy or experienced, all financial practitioners eventually let bias, overconfidence, and emotion cloud their judgment and misguide their actions. Yet most financial decision-making models fail to factor in these fundamentals of human nature. In Beyond Greed and Fear, the most authoritative guide to what really influences the decision-making process, Hersh Shefrin uses the latest psychological research to help us understand the human behavior that guides stock selection, financial services, and corporate financial strategy. Shefrin argues that financial practitioners must acknowledge and understand behavioral finance—the application of psychology to financial behavior—in order to avoid many of the investment pitfalls caused by human error. Through colorful, often humorous real-world examples, Shefrin points out the common but costly mistakes that money managers, security analysts, financial planners, investment bankers, and corporate leaders make, so that readers gain valuable insights into their own financial decisions and those of their employees, asset managers, and advisors. According to Shefrin, the financial community ignores the psychology of investing at its own peril. Beyond Greed and Fear illuminates behavioral finance for today's investor. It will help practitioners to recognize—and avoid—bias and errors in their decisions, and to modify and improve their overall investment strategies.

Read More Show Less

Editorial Reviews

Standard wisdom holds that investments are made according to factual information and analytical tools, but Shefrin (finance, Santa Clara U.) argues that psychology and intrinsic human behavior also play a powerful role. He finds that risk-taking behavior is driven by hope and fear rather than by greed and fear, and that financial practitioners of all stripes keep making the same mistakes over and over. Annotation c. Book News, Inc., Portland, OR (
From the Publisher

"This refreshingly iconoclastic book awakens us all to how little we know about financial markets, and how much we have to discover. I particularly enjoyed the reference to the emperor's clothes worn by the mutual fund industry. Shefrin's clear reaffirmation of the fallibility of professional investors will lead even the most impressionable of investors to consider, yet again, the advantages of market indexing strategies."--John Bogle, Founder and Senior Chairman, The Vanguard Group, and author, Common Sense on Mutual Funds

"Behavioral finance is about normal people and the markets that drive them crazy. Shefrin's insights into these people and markets will provide you with solutions to many financial puzzles--as you read the book and long after you close it."--Meir Statman, Glenn Klimek Professor of Finance, Leavey School of Business, Santa Clara University

"Beyond Greed and Fear challenges your most fundamental assumptions about investing and uncovers psychological traps that may prevent you from achieving higher returns on your portfolio."--Martin S. Fridson, Managing Director, Merrill Lynch & Co., and author, How to Be a Billionaire

"Shefrin synthesizes a wealth of research and observations about human behavior and financial anomalies into a broad and deep perspective on financial markets. No other book so splendidly lays out the fundamentals of behavioral finance."--Robert Shiller, Stanley B. Resor Professor of Economics, Cowles Foundation for Research in Economics, Yale University

"Beyond Greed and Fear is the first truly comprehensive behavioral finance book written for practitioners. It should be required reading for portfolio managers and traders."--W. Van Harlow III, President and CIO, Strategic Advisors, Fidelity Investments

Read More Show Less

Product Details

Meet the Author

Hersh Shefrin holds the Mario L. Belotti Chair in Finance at the Leavey School of Business, Santa Clara University.

Read More Show Less

Table of Contents

Part I: What Is Behavioral Finance
1. Introduction
2. Heuristic-Driven Bias: The First Theme
3. Frame Dependence: The Second Theme
4. Inefficient Markets: The Third Theme
Part II: Prediction
5. Trying to Predict the Market
6. Sentimental Journey: The Illusion of Validity
7. Picking Stocks to Beat the Market
8. Biased Reactions to Earnings Announcements
Part III: Individual Investors
9. "Get-Evenitis": Riding Losers Too Long
10. Portfolios, Pyramids, Emotions, and Biases
11. Retirement Saving: Myopia and Self-Control
Part IV: Institutional Investors
12. Open-Ended Mutual Funds: Misframing, "Hot Hands", and Obfuscation Games
13. Closed-End Funds: What Drives Discounts?
14. Fixed Income Securities: The Full Measure of Behavioral Phenomena
15. The Money Management Industry: Framing Effects, Style "Diversification", and Regret
Part V: The Interface between Corporate Finance and Investment
16. Corporate Takeovers and the Winner's Curse
17. IPOs: Initial Underpricing, Long-term Underperformance, and "Hot-Issue" Markets
18. Optimism in Analysts' Earnings Predictions and Stock Recommendations
Part VI: Options, Futures, and Foreign Exchange
19. Options: How They're Used, How They're Priced, and How They Reflect Sentiment
20. Commodity Futures: Orange Juice and Sentiment
21. Excessive Speculation in Foreign Exchange Markets
Final Remarks

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)