Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing

Tillinghast, longtime manager of the Fidelity Low-Priced Stock Fund, gives sage advice on successful stock market investing in this informative manual. He acknowledges that investing is inherently unpredictable, but does have tips for avoiding common mistakes and increasing the odds in your favor. Some advice is fairly basic, such as his discussion of selecting reliable, ethical money managers, while other pointers are more complicated, such as the information he provides on learning to value stocks properly. Tillinghast addresses pertinent questions including how to anticipate and prepare for changes in a market. He also explores the fallibility of human judgment, later offering as contrast an inventory of the psychological traits of successful investors. One of the most cogent tips he offers is to only invest in businesses that you understand. By understand, Tillinghast means knowing what every segment of an industry does and how each one makes money. Written for investors at all levels, this practical, no-nonsense guide doesn’t provide specifics on where to invest but does empower readers to generate their own informed decisions. (Aug.)