I’ve posted Entry #45 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Value Investing Is Behavioral Finance In Action.
Juicy Excerpt: Behavioral Finance is the study of why smart people make stupid investing decisions. Another way of putting it is — Behavioral Finance is the study of emotional impulses that cause some investors to fail to follow Value Investing principles.
Value Investors don’t need Behavioral Finance. They’re already doing it right!
The purpose of Behavioral Finance should be to lead people to Value Investing. No?