The Behavioral Investor Book Summary - The Behavioral Investor Book explained in key points
Listen to the Intro

The Behavioral Investor summary

Daniel Crosby

Discover how your behavior is subconsciously impacting your investments

4.3 (138 ratings)
23 mins

Brief summary

"The Behavioral Investor" by Daniel Crosby explores the psychological aspects of investing and how human behavior can impact investment decisions, often leading to poor outcomes. The book offers insight on how to manage emotions and behavioral biases to make more rational investment choices.

Table of Contents

    The Behavioral Investor
    Summary of 8 key ideas

    Audio & text in the Blinkist app
    Key idea 1 of 8

    To be a successful investor, you must understand how your brain works.

    What drives the stock market?

    Many people think it’s money. After all, money is at the heart of every portfolio. But far more important than the money people invest are the people who invest that money in the first place. The people are the ones who make the decisions to buy, hold, and sell.

    Unfortunately, those decisions are often bad. Why? Because as wonderful as our brains are, they weren’t designed to work in complex, stressful situations. So, if you want to make good financial choices, you need to realize that your brain won’t always lead you in the right direction.

    The key message here is: To be a successful investor, you must understand how your brain works.

    The human brain was designed to keep our prehistoric ancestors safe. And even though you probably don’t go to work facing mortal danger from saber-toothed tigers in the bush, your brain still acts as if you are.

    For example, whenever you’re assessing financial risk, the brain areas responsible for avoiding attack light up. Because your brain thinks you’re being threatened, it limits its focus to these areas to keep you alive. This makes it harder for you to think clearly and makes it more likely that you’ll overlook important information.

    Our brains also encourage us to be impatient. They do this by giving us a hit of dopamine – a hormone that makes us feel good – whenever we do something that results in immediate success. Because we like that feeling, we’ll do whatever it takes to get it. Sadly, that means you, as an investor, might sabotage your financial plans because you’re tempted by short-term wins instead of long-term gains.

    Intellectually, you might know that it’s not a good idea to chase every opportunity to make a quick buck. But our brains are desperately money-hungry. According to Dr. Brian Knutson of Harvard University, humans are drawn to money without any reference to its actual value. This makes it difficult to resist the promise of reward.

    In truth, your brain’s money-lust will always cloud your judgment. But if you’re aware of it, you’ll be better placed to overcome your brain’s impulses and stop yourself before you do the wrong thing.






    Want to see all full key ideas from The Behavioral Investor?

    Key ideas in The Behavioral Investor

    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    What is The Behavioral Investor about?

    The Behavioral Investor (2018) explores the subconscious thought patterns and emotions that influence financial investors. Author Daniel Crosby provides insight and guidance that will help you overcome your natural inclinations so that you can make better financial decisions.

    The Behavioral Investor Review

    The Behavioral Investor (2018) provides valuable insights into the psychology of investing and why we make irrational financial decisions. Here's why this book is worth reading:

    • Packed with practical strategies and behavioral tips, it helps readers navigate the complex world of investing and develop a more disciplined approach.
    • By exploring behavioral biases and cognitive errors, this book sheds light on the underlying psychological factors that can influence our financial choices.
    • With its engaging anecdotes and case studies, it presents complex concepts in an accessible and relatable manner, ensuring the book is never dull or uninteresting.

    Best quote from The Behavioral Investor

    Our preference for [sameness over change] has profound implications on the quality of both our lives and investment decisions.

    —Daniel Crosby
    example alt text

    Who should read The Behavioral Investor?

    • Financial investors who want to achieve better results
    • Aspiring traders developing financial strategies
    • Anyone with an interest in psychology

    About the Author

    Daniel Crosby is a psychologist and behavioral finance expert whose ideas have been published by Huffington Post, Risk Management Magazine, and in a monthly column for Investment News. He is also co-author of the New York Times best-seller, Personal Benchmark: Integrating Behavioral Finance and Investment Management.

    Categories with The Behavioral Investor

    Book summaries like The Behavioral Investor

    People ❤️ Blinkist 
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    People also liked these summaries

    4.7 Stars
    Average ratings on iOS and Google Play
    32 Million
    Downloads on all platforms
    10+ years
    Experience igniting personal growth
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 7,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Start your free trial

    The Behavioral Investor FAQs 

    What is the main message of The Behavioral Investor?

    The main message of The Behavioral Investor is understanding and managing our biases to make better investment decisions.

    How long does it take to read The Behavioral Investor?

    The reading time for The Behavioral Investor varies depending on the reader, but it typically takes several hours. However, the Blinkist summary can be read in just 15 minutes.

    Is The Behavioral Investor a good book? Is it worth reading?

    The Behavioral Investor is worth reading as it provides valuable insights into the psychological factors that influence investment decisions.

    Who is the author of The Behavioral Investor?

    The author of The Behavioral Investor is Daniel Crosby.

    What to read after The Behavioral Investor?

    If you're wondering what to read next after The Behavioral Investor, here are some recommendations we suggest:
    • The Laws of Wealth by Daniel Crosby
    • Flash Crash by Liam Vaughan
    • How to Make Money in Stocks by William J. O'Neil
    • The FALCON Method by David Solyomi
    • How Highly Effective People Speak by Peter Andrei
    • All It Takes Is a Goal by Jon Acuff
    • Warren Buffett's Ground Rules by Jeremy C. Miller
    • A Random Walk Down Wall Street by Burton G. Malkiel
    • The Intelligent Investor by Benjamin Graham and comments by Jason Zweig
    • The 15 Invaluable Laws of Growth by John C. Maxwell