Barry Ritholtz, Columnist

Meir Statman on Behavioral Investing

Irrational is normal.

May 2, 2017 at 3:11 PM UTC

Barry Ritholtz is a former Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”

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This week on our Masters in Business radio podcast, we sit down with Meir Statman, finance professor at Santa Clara University and author of numerous books on the behavioral aspects of investing, including "What Investors Really Want: Know What Drives Investor Behavior and How to Make Smarter Financial Decisions" and the recently published, "Finance for Normal People: How Investors and Markets Behave."

He was one of the early researchers into behavioral economics, especially how it applied to investors. Statman discusses the wild “overreaction” to his earliest papers on the topic; some readers even threatened to boycott the finance journal that published his research. Since then, the field has not only become accepted, his research and papers on behavioral economics have won numerous awards.