Thinking, Fast and Slow by Daniel Kahneman
In this book, renowned psychologist and Nobel Prize winner Daniel Kahneman, lucidly demonstrates that even though humans pride themselves on being consistently, they are infact often irrational due to their inherent biases. The truth of the matter is that humans are subject to many biases and these biases can strongly impact our ability to make rational investment decisions. Being aware of these biases gives us fighting chance of avoiding them and enhancing our ability to make rational decisions.
The art of thinking clearly by Rolf Deobelli
In this book, Rolf Dobelli gives insights on the various behavioural biases that people can succumb to and eventually impact their ability to make rational investment decisions. He lists out 99 common fallacies of our thinking which lead us to make mistakes and gives us practical advice and tips on how to think better.
Everybody Lies: Big Data, New Data, and What the Internet Can Tell Us About Who We Really Are by Seth Stephens-Davidowitz
In this book, Seth Stephens-Davidowitz, an ex-Google data scientist and op-ed writer for the New York Times and The Guardian, reflects on the fact that while all human beings lie to other humans, they tend to be shockingly honest when searching the internet. He demonstrated through in-depth research and lucidly crafted examples that datasets gleaned from mapping internet usage behaviour can yield important insights about how people really react to circumstances and deal with stress, compared to their official, public-facingresponses.
Contrarian Investment Strategy: The Psychology of Stock Market Success by David Dreman
In this book, the author David Dreman, a name that is synonymous with ‘contrarian investing’ shares his contrarian strategies that have proven to be winners and have stood the test of time. He focuses on how investors can create a successful contrarian investment strategy and shows why contrarian stocks offer extra protection in bear markets and can potentially deliver superior returns in bull markets.
All About Asset Allocation by Richard A Ferri
This book lucidly underscores the importance of asset allocation and offers very specific and actionable advice on attaining optimal asset allocation. The book can be particularly informative for individuals planning their retirement as it focuses on what one can control: costs, taxes and risks.