Newsmakers

Meir Statman, Glenn Klimek Professor of Finance, was quoted in an article by Bloomberg Businessweek talking specifically about the differences between a consumer’s decision process and an investor’s decision process. The article explains behavior with relation to investing as an overreaction versus an underreaction of investors. When speaking about investors, Statman introduces the idea that in investing there are not always winners since the market is competitive.

An excerpt from the article:

On the surface, deciding to buy a stock often resembles other kinds of purchases where good research and savvy shopping can pay off. You might buy a cheap television at Costco and find that you like it, so you like the store, too. So why not buy Costco stock as well? But stock trading is more brutally competitive than consumer bargain hunting—not everyone wins.

Learn more about Professor Meir Statman »