Prelims

Half Title Page

Investment Traps Exposed

Navigating Investor Mistakes and Behavioral Biases

Title Page

Investment Traps Exposed

Navigating Investor Mistakes and Behavioral Biases

By

H. Kent Baker

American University, Kogod School of Business, Washington, DC

Vesa Puttonen

Aalto University, School of Business, Helsinki, Finland

United Kingdom – North America – Japan – India – Malaysia – China

Copyright Page

Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2017

Copyright © 2017 Emerald Publishing Limited

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British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-78714-253-4 (Print)

ISBN: 978-1-78714-252-7 (Online)

ISBN: 978-1-78714-721-8 (Epub)

Acknowledgments

The greatest part of a writer’s time is spent in reading, in order to write; a man will turn over half a library to make one book.

Samuel Johnson

The observation aptly applies to Investment Traps Exposed: Navigating Investor Mistakes and Behavioral Biases. We owe a debt of gratitude to literally hundreds of authors whose work we read to provide a foundation for writing this book. We want to acknowledge the outstanding work by Elizabeth Caravella and Linda Baker, who diligently read each chapter providing thoughtful suggestions and edits to improve the book. Special thanks also go to Mikko Niemenmaa, Sanni Nissilä, Ilja Tauber, and Markus Weckman for research assistance in developing the various cases. We also thank our partners at Emerald Publishing Groups for their professionalism, especially Charlotte Maiorana (Senior Editor), Fiona Mattison (Editorial Assistant), and Jaya Chowdhury (Project Manager). We appreciate the research support provided by our respective institutions — the Kogod School of Business at American University and School of Business at Aalto University. Finally, we thank our families for their encouragement and support and dedicate the book to them: Linda and Rory Baker as well as Marika and Sandy Puttonen.