Overconfidence : videos, links, and Moore (as in more Moore)

For Behavioral Finance we will be covering overconfidence, here are some videos you may enjoy on the topic:

From PBS:



More from Moore (from the above PBS piece)






From AfterHour Investing:


After Hours Investing: Beware Investor Overconfidence (video)!: "Here's an interview from Harvard Kennedy School's Investment Decisions and Behavioral Finance conference that highlights how

S.E.C. Sued Over Shareholder Rule - NYTimes.com

S.E.C. Sued Over Shareholder Rule - NYTimes.com:The SEC is being sued by two groups to block this. "The S.E.C., in a 3-2 vote, stipulated that investors or groups of shareholders who have owned 3 percent of a company for three years could have candidates on proxy statements. Under the regulation, shareholders would be able to nominate at least one director and as much as 25 percent of a board. "

Justin Fox on Regulatory Reform and Market Irrationality -- Seeking Alpha

This is a bit old (over a year ago) but still worth a read...we will be using it in class and think it is worthy of a wider audience:Justin Fox on Regulatory Reform and Market Irrationality -- Seeking Alpha:"...a lot of people in academic finance had this idea that financial market prices were more reliable and rational than those in goods markets, because financial markets were more liquid,

A look at historical bubbles

Interesting

Excessive Volatility and Market Efficiency Lecture from Yale's Robert Schiller

We mentioned excessive volatility in last week's class.  For more on the topic, learn from Robert Schiller: (skip in to about 6 minutes for the EMH discussion).

I am clearly biased from my work with BonaResponds, but those that I dealt with in New Orleans were not happy with their insurance, but

Conspicous consumption of Hedge Funds?

Do investors own hedge funds to brag and signal their wealth?  Maybe.  That is the view of " Meir Statman... the Glenn Klimek Professor of Finance at the Leavey School of Business, Santa Clara University and Visiting Professor at Tilburg University in the Netherlands."

More evidence that value stocks beat glamour

From the Financial Post:More evidence that value stocks beat glamour: "In a study that may be published in the Journal of Behavioral Finance, it found that when value and glamour stocks failed to live up to earnings expectations, glamour stocks fell while prices for value stocks rose. A value stock is one that trades lower than its fundamentals would suggest. A bargain, in short.This occurs even

Blockbuster Files for Bankruptcy - NYTimes.com

Blockbuster Files for Bankruptcy - NYTimes.com: "Blockbuster, the video rental chain, on Thursday filed for Chapter 11, hoping to slash its hefty debt load and retrench in the face of competition from rivals providing online and mail-based services.Blockbuster has reached an agreement with its senior bondholders to cut its debt by roughly 90 percent, to about $100 million, by exchanging bonds for

Buffett and JayZ on "Building Moats"

The next investment course to take: Psych 101

CTV News | The next investment course to take: Psych 101: "A few years ago, Michael Shermer wrote an op-ed piece titled “Why people believe strange things about money,” which cites research indicating that more people would prefer to earn $50,000 a year while everyone else earned $25,000, as opposed to earning $100,000 a year while everyone else earned $250,000. This study assumes that the prices

Emorationaity

Are rational? Emotional? or Both...Read the full transcript: "...thanks to brain imaging – you know, this technique that allows these beautiful, 3D images of the brain – we showed that basically, those so-called rational and emotional parts of the brain are exchanging information on a constant basis in a very interdependent fashion, and there is not such a dichotomy at the biological level.

Been a long time

Well that was not planned...but between BonaResponds taking up tons of time, classes starting, and losing a really good friend, I have been out of commission for several weeks.  But I hope my schedule has cleared some and I will be back to posting on a more regular basis.