My guest today is Meir Statman, the Glenn Klimek Professor of Finance at the Leavey School of Business, Santa Clara University. His research focuses on behavioral finance. He attempts to understand how investors and managers make financial decisions and how these decisions are reflected in financial markets. Meir’s latest book, “Finance for Normal People: How Investors and Markets behave” has been published by Oxford University Press.
The topic is his book What Investors Really Want: Know What Drives Investor Behavior and Make Smarter Financial Decisions.
In this episode of Trend Following Radio we discuss:
- How we make decisions, and how these decisions are reflected in markets
- What investors want besides the utilitarian aspect of money
- Philanthropy and status
- Why Madoff’s clients’ own greed helped them fall into a trap
- Envy and happiness
- The fear of losing and the fear of missing out
- Mental accounting
- Statman’s drivers and early influences
- Libertarianism vs. paternalism
- Social Security and mandatory retirement savings
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