Build Your Wealth Book and Course Research

Sasin Demystified PDFs

Chapter 1. Create a written plan and follow it

Overconfidence bias

Clayson, D. E. (2005). Performance Overconfidence: Metacognitive Effects or Misplaced Student Expectations? Journal of Marketing Education, 27(2), 122-129. https://www.researchgate.net/publication/240282738_Performance_Overconfidence_Metacognitive_Effects_or_Misplaced_Student_Expectations

Christensen-Szalanski, J. J. (1981). Physicians’ use of probabilistic information in a real clinical setting. Journal of Experimental Psychology: Human Perception and Performance, 7, 928-935. https://psycnet.apa.org/doiLanding?doi=10.1037%2F0096-1523.7.4.928

Westat. (2009). National Consumer Survey on Personal Finance. Washington: Certified Financial Planner Board of Standards Inc.

Princeton Survey Research Associates International. (2012). 2012 Household Financial Planning Survey. Consumer Federation of America. Washington DC: Certified Financial Planner Board of Standards, Inc. https://consumerfed.org/pdfs/Studies.CFA-CFPBoardReport7.23.12.pdf

Overestimation bias

Presson, P. K., and Benassi, V. A. (1996). Illusion of control: A meta-analytic review. Journal of Social Behavior & Personality, 11(3), 493-510. https://www.proquest.com/openview/cdfdecc2694f5c8d8fbf174f077055de/

Buehler, R., Griffin, D., and Ross, M. (1994). Exploring the “planning fallacy”: Why people underestimate their task completion times. Journal of Personality and Social Psychology, 67(3), 366-381. https://web.mit.edu/curhan/www/docs/Articles/biases/67_J_Personality_and_Social_Psychology_366,_1994.pdf

Zenger, T. R. (1992). Why do employers only reward extreme performance? Examining the relationships among performance, pay, and turnover. Administrative Science Quarterly, 37, 198-219. https://www.jstor.org/stable/2393221

College Board. (1976-1977). Student descriptive questionnaire. Princeton, NJ: Educational Testing Service. (In a survey of high school seniors, 25% rated themselves in the top 1% in their ability to get along with others)

Svenson, O. (1981). Are we less risky and more skillful than our fellow drivers? Acta Psychologica, 47, 143-151. https://www.researchgate.net/publication/222465512_Are_We_All_Less_Risky_and_More_Skillful_than_our_Fellow_Drivers

Expert overconfidence, physician overconfidence

Physicists’ overconfidence

Henrion, M., & Fischhoff, B. (1986). Assessing Uncertainty in Physical Constants. American Journal of Physics, 54, 791-797. https://www.cmu.edu/epp/people/faculty/research/Fischoff-Henrion-Assessing%20uncertainty%20in%20physical%20constants.pdf

Chapter 2. Simplicity Beats Complexity; Keep it Simple

University of Chicago students were asked to predict the outcome of football games. Regardless of the amount of information provided, participants were about 62% accurate. Confidence levels rose from 69% to 80% as the number of information points increased from 6 to 30.

Tsai, C. I. (2008). Effects of amount of information on judgment accuracy and confidence. Organizational Behavior and Human Decision Processes, 107, 97-105. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1297347

Seductive details effect

Sanchez, C. A. and Wily, J. (2006). An examination of the seductive details effect in terms of working memory capacity. Memory & Cognition, 34(2), 344-355. https://www.researchgate.net/publication/7029604_An_Examination_of_the_Seductive_Detail_Effects_in_Terms_of_Working_Memory_Capacity

Garner, R., Brown, R., Sanders, S., & Menke, D. (1992). Seductive details and learning from text. In K. A. Renninger, S. Hidi, & A. Krapp (Eds.), The role of interest in learning and development, 239-254. Hillsdale, N.J.: Lawrence Erlbaum. https://www.taylorfrancis.com/chapters/edit/10.4324/9781315807430-13/seductive-details-learning-text-ruth-garner-rachel-brown-sylvia-sanders-deborah-menke

Garner, R., Gillingham, M., & White, C. (1989). Effects of “seductive details” on macroprocessing and microprocessing in adults and children. Cognition and Instruction, 6, 41-57. https://www.jstor.org/stable/3233462

Harp, Shannon F.; Mayer, Richard E. (1997). The role of interest in learning from scientific text and illustrations: On the distinction between emotional interest and cognitive interest. Journal of Educational Psychology, 89(1), 92-102. https://www.researchgate.net/publication/232469565_The_Role_of_Interest_in_Learning_from_Scientific_Text_and_Illustrations_On_the_Distinction_Between_Emotional_Interest_and_Cognitive_Interest

Harp, S. F., & Mayer, R.E. (1998). How seductive details do their damage: A cognitive theory of interest in science learning. Journal of Educational Psychology, 90, 414-434. https://www.proquest.com/openview/03418302403bc84642d0d4d091f52b0f/

Diversification

Stotz, A., & Lu, W. (2014, July 17). Ten Stocks are Enough in Asia. Retrieved 2014, from Social Science Research Network: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2461115

Goetzmann, W. N., & Kumar, A. (2008). Equity Portfolio Diversification. Review of Finance, 12(3), 433-463. https://academic.oup.com/rof/article/12/3/433/1598033

Chapter 3. Start Early; Time Really is Money!

Barber, B. M., & Odean, T. (2000). Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. The Journal of Finance, 55(2), 773-806. Available at SSRN: http://ssrn.com/abstract=219228 or http://dx.doi.org/10.2139/ssrn.219228

Chapter 4. Be Realistic About Stock Market Returns

Fama, E. F., & French, K. R. (2010, October). Luck Versus Skill in the Cross-Section of Mutual Fund Returns. The Journal of Finance, 65(5), 1915-1947. Information originally accessed from the authors’ December 14, 2009, Tuck School of Business Working Paper No. 2009-56; Chicago Booth School of Business Research Paper; Available at SSRN: http://ssrn.com/abstract=1356021

Bogle, J. (2007). The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns. Hoboken, N.J.: John Wiley & Sons. https://amzn.to/3Hv1ddY

Warner, B. (2014, May 4). In 1965, A Man Asked His Neighbor To Manage His Modest $67,000 Savings. Guess Who that Neighbor Was. Retrieved from Celebrity Net Worth: http://www.celebritynetworth.com/articles/entertainment-articles/1965-man-asked-neighbor-warren-buffett-invest-67k-life-savings-guess-turned

Chapter 6. Youthful Mistakes Hurt More Than You Think

Forecasting – Stop Wasting Time, Start Adding Value, Part I from Andrew Stotz, PhD, CFA

Idem, Endnote 12

Chapter 7. Start Building Wealth Through Savings

Dominguez, J., & Robin., V. (1999). Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence. https://yourmoneyoryourlife.com/book-summary/

PayScale, Inc. (2015). 2013-2014 PayScale College Salary Report. Retrieved 2014, from Payscale.com: https://www.payscale.com/college-salary-report

U.S. Securities and Exchange Commission. (2014). Mutual Fund Fees and Expenses. (O. o. Advocacy, Ed.) Investor Bulletin SEC Pub. No. 162 (5/14). Retrieved from: http://www.sec.gov/oiea/investor-alerts-bulletins/ib_mutualfundfees.pdf

Investment Company Institute (2014). Investment Company Fact Book; A Review of Trends and Activities in the U.S. Investment Company Industry, 54th Edition. Retrieved from ICI Fact Book: https://www.ici.org/doc-server/pdf%3A2014_factbook.pdf

Chapter 11. Don’t Trade Too Much

Dichev, I. D. (2004, December). What are Stock Investors Actual Historical Returns? Evidence from Dollar-Weighted Returns. Retrieved from Social Science Research Network: http://ssrn.com/abstract=544142

Chapter 12. Cool Heads Win in the End

Barber, B. M., & Odean, T. (2000). Trading is Hazardous to Your Wealth: Common Stock Investment Performance of Individual Investors. The Journal of Finance, 55(2), 773-806. Available at SSRN: http://ssrn.com/abstract=219228

Kahneman, D., & Tversky, A. (1979, March). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-291. Available here: https://courses.washington.edu/pbafhall/514/514%20Readings/ProspectTheory.pdf

Zweig, J. (September 2007). Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich (First ed.). Simon & Schuster. https://amzn.to/3SyS9e8