BOOK OF VALUE

The financial markets are noisy and full of opinions, innuendo, and misinformation. They overwhelm, confuse, and disorient, inviting all kinds of deception. No lesson on investing is complete if it does not account for the emotional and psychological biases that can lead investors astray and explain how to correct for those biases. Analytical techniques are useless if they are not integrated into a well-conceived decision framework that recognizes how we are wired to perceive the world.

Accordingly, BOOK OF VALUE looks to philosophy and psychology to redefine modern portfolio theory for investors at all skill levels. Building on the philosophy of Thomas Kuhn and Karl Popper, Anurag Sharma defines an “art of looking” that blocks out the din of the market and pinpoints deep value. He outlines how to be mindful of psychological biases, frame investment decisions, and correctly apply key analytical techniques to build lucrative and durable stock portfolios. This groundbreaking guide should be on the shelf of anyone who takes investing seriously.

Anurag Sharma is associate professor of management in the Eugene M. Isenberg School of Management at the University of Massachusetts, Amherst. He writes for the Strategic Management Journal and the Academy of Management.