The Laws of Wealth

Outline

The Laws of Wealth (2016) explains how psychology affects our financial decisions and why investors often act against their own interests. Daniel Crosby presents simple rules for managing yourself, such as controlling emotions and avoiding overconfidence, and rules for managing investments using a disciplined, evidence-based process. The book helps readers make calmer and wiser money decisions.

• Investors often act against their own interests, and psychology explains why so many money decisions go wrong.
• The book offers ten essential rules for investing more rationally.
• Some rules are about managing yourself, such as controlling emotions and avoiding overconfidence.
• Other rules are about managing investments through a disciplined, evidence-based process rather than impulse.
• Knowing your own cognitive biases helps you make calmer and wiser money decisions.

Daniel Crosby is an American psychologist and behavioural finance expert who applies psychology to investing and financial planning. He serves as chief behavioural officer at an investment firm and speaks widely about investor behaviour. His books include The Laws of Wealth, The Behavioral Investor, and The Soul of Wealth.