Migration: Paths Through Time and Space (Biological Science Texts) Book

4.5 stars. A fascinating survey of how the most primitive recesses of our brains drive so many of our investment decisions. This book explores why (for instance), despite the fact that everyone knows we should "buy low and sell high," so few people are actually able to stick to that rule. When stocks collapse 25% in one day, most people panic and sell their stocks rather than buying MORE stocks (which are ON SALE!) the next day. On the other hand, when the stock market soars to new heights, most people feel compelled to BUY despite the fact that in such a climate, securities are more EXPENSIVE than they have ever been. The human brain is hard-wired for us to react in exactly this way, despite the fact that we can logically recognize that these are foolish investment choices.

Money represents the means of maintaining life and sustaining us as organisms in the world and therefore it triggers highly emotional parts of our brains. Losing money can feel like we are standing on the crumbling edge of a cliff, pushing all logical decision making out the window. This fascinating book draws on research from neurology, psychology, and economics to shed light on the tension between reason and emotion in our investment decisions. The author walks the reader through practical steps to help investors make more mindful decisions in light of our all too human weaknesses.