Book Review Title: "The Behavior Gap: Simple Ways to Stop Doing Dumb Things With Money" Author: Carl Richards Publisher: Portfolio Penguin, 2012; 192 pages; $24.95 The concept that individual economic behavior is not nearly so rational as economists once thought is not nearly so revolutionary as it once was.But understanding that our personal financial decision-making is flawed, and solving for that, are two different things. Financial planner and New York Times money blogger Carl Richards aims to help readers do the latter in his new book, "The Behavior Gap: Simple Ways to Stop Doing Dumb Things With Money." In Richards' system (and by system I mean series of bizarrely insightful and useful Sharpie sketches illustrating the equally bizarre ways individuals commonly think about their financial lives and investments on napkins), the behavior gap refers to that fundamental truth of the markets: that investor performance is significantly worse, on av...
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