Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Behavioral Finance is a relatively recent revolution in finance that applies insights from all of the social sciences to finance. New decision-making models incorporate psychology and sociology, among other disciplines, to explain economic and financial phenomenon, such as erratic stock price variations. Psychological patterns such as overconfidence and perceived kinks in the value function seem to impact financial decision-making, but are not included in classical theories such as the Expected Utility Theory. Kahneman and Tversky's Prospect Theory addresses such issues and sheds light on irrational deviations from traditional decision-making models.
00:00 - Chapter 1. What Is Behavioral Finance? 09:01 - Chapter 2. Market Volatility: Random, or Socially Influenced? A Present Value Analysis 19:58 - Chapter 3. Overconfidence: Its Ubiquity and Impact on Financial Markets 38:29 - Chapter 4. The Kahneman and Tversky Prospect Theory or, How People Make Choices 58:50 - Chapter 5. The Regret Theory and Fashion as a Measure of the Market