Investments: Analysis and Behavior

Investments: Analysis and Behavior

• Chapter 1- Introduction

• ©2008 McGraw-Hill/Irwin

Learning Objectives

• Learn the power of building wealth through investing over time.
• Understand the nature and performance of financial assets.
• Identify common objectives of investors.
• Practice obtaining important financial information.
• Become acquainted with job opportunities in the financial services sector.

Buy High, Sell Low?!

• It is obvious that investors should buy low and sell high in order to build wealth over time.
• So why do investors frequently buy high and sell low?
• The investment process involves analytical analysis of investment alternatives that are filtered through a decision process that is fraught with psychological biases.
• To be a successful investor, you should be able to use the analytical tools and control your emotions and psychological biases!