The Laws of Wealth: Psychology and the secret to investing success Hardcover – June 27, 2016

In the interest of disclosure, I've eaten BBQ with the author. This makes us blood brothers similar to the Lone Ranger and Tonto.I consider myself skilled in a fair number of arenas. I make great fried chicken. I can capture an audience and teach difficult concepts in simple terms. I can tell you the roster (starters and bench) of the 1985 national runner-up OU Sooner men's basketball team. An area where I've always felt deficient is in my knowledge of and abilities surrounding investing. And, while I am a student of psychology and human behavior, it has always felt most writing on the intersection of psychology and economics ends with the punch line, "yes, you're really an idiot."That is why I can so easily endorse 'The Laws of Wealth' by Dr. Daniel Crosby. Speaking to the novice investor, Dr. Crosby has addressed my greatest fear - that I really am as bad at investing as all the other behavioral finance experts suggest - and turned it on its ear. Instead of being shamed by my lack of "secret knowledge," Dr. Crosby suggests that all that's really required to be a successful investor is the adoption of simple rules, dutifully applied. What previously seemed inaccessible now appears reasonable, even obtainable. His language is clear, concise, entertaining, and impactful. His approach is rigorous, grounded, and understandable. For the average investor, previously scared of looking foolish with inexperience, 'The Laws of Wealth' provides a way forward that feels at once calming and energizing. Kudos to Dr. Crosby for pulling back the curtain and sharing with the world the simple secrets to investing.

Full disclosure: I know the author, was thanked in the acknowledgements, and my work was quoted in the book.There are many things we cannot control in the world of investing. In the Laws of Wealth, Dr. Crosby makes a compelling argument for what we can control – our own behavior – may be the most important aspect of all in determining the long-term success of our financial plans.A psychologist by training, Dr. Crosby lays a foundation of evidence that the behavioral shortcuts we use to make our every day lives more efficient actually cripple our ability to be successful investors. While this foundation is built by the thorough citation of academic studies, it is illustrated with entertaining anecdotes.Perhaps that is what makes this book so great. It never feels like a dry recitation of prior work. Dr. Crosby expertly weaves into the academic basis interesting quotes from practitioners and compelling narratives that entertain and educate.The first half the book lays out Dr. Crosby’s 10 laws of wealth, each rule crafted to help address and combat a unique behavioral bias. The basis for the rules themselves are discussed at length with a surprisingly cross-disciplinary approach: a citation of a seminal behavioral finance paper may be sandwiched between a pop-culture reference and the results of a highly quantitative study. Chapters are finished with a highly practical three point summary, laying out what we should think, ask, and do as a result of what we just learned.The second half of the book outlines why misbehavior may actually be opportunity for prudent investors. A few simple rules are outlined – again supported by a significant weight of evidence – that may help the everyday investor take advantage of the behavioral biases exhibited by other market participants to create excess return.My only critique of this book is that is can sometimes feel more like a well organized discussion of other people’s work (“OPW”) than a truly unique contribution to the field of behavioral finance itself. This use of OPW can sometimes feel a bit jarring as the author rapidly jumps between different anecdotes and studies. While the book has a comprehensive thread of thought, I sometimes found myself laughing at an anecdote mid-chapter, and then scratching my head trying to recall what the overall chapter theme was.Yet perhaps Dr. Crosby’s greatest contribution to this space is the fact that he has created a very accessible and comprehensive introduction to behavioral finance in a highly entertaining package. In a field where results can be locked away in indecipherable academic papers and numeric tables, The Laws of Wealth does an expert job compiling, translating, explaining, and entertaining to ultimately illustrate a singular, but highly important point: we ultimately control the single most important factor in investing – ourselves.

I never heard of Dr. Daniel Crosby until I was introduced to him through a work connection in a small webinar about some of the principles found in the book. I received so much value in that short talk I ordered the book before the ink from my notes dried.This book is great! FULL of clear ideas, many compiled from other authors and researchers and brought into a cohesive, digestible format.Behavioral finance is an emerging topic that I believe will become engrained in financial services and this book does a stellar job at showcasing how to create a strategy that leverages behavioral finance in your favor while most fall victim to it.To top it off, the author writes like he speaks and sprinkled his entertaining sense of humor throughout the book. Very fun, informative, and thought provoking read!

An excellent read that could be the evolution of value investing in the ever changing world of investments. Full of anecdotes and references, this book can do well by novice investors, (in part one), and professionals of all ilk, (part two). My only knock against the book, which is at no fault to the author and is probably dependent on who his intended audience is, is that there are terms and vocabulary that is more so meant for academics than a regular reader who has a vague interest in investments, so I can see how some may get lost. (Please note, the writer is a PhD. This is understandable.) I see this book as beneficial to people barely in investments in help in choosing a good professional, so that's why that was a concern. But I can speak for myself, this is a fluid read with many insights to build upon and may be ahead of its time a little. I will be using this book as a reference and revisit time and time again. I truly love it. Exceptional work in gathering such information and condensing it for schmucks like me. Bravo.

Although the book title suggests that Crosby is going to give you a formula, the book gives timeless advice about investing and recognizing your own limitations as an investor.There are strong suggestions about how to look for investments that will last, and how to think about things when conditions change. Overall, a valuable read and a reminder to investors of all maturities.

This was a great read, well worth a look for anyone on their investment journey

Great book! Really jealous you start to see your own blind spots, especially for the beginner.

Great book for both single investors and advisors. A practical view of behavioural finanance and few very easy to follow rules to improve your behaviour in investing

Lots of interesting info about biases but in the end ignores the fact that a 'stock picker' has an extremely low probability of success against these biases and spends all their time dwelling on them. It talks about how "passive' investing can be beaten but takes you down the same beaten path of "Here's my formula that will beat these biases". Disappointing because if you follow his concepts you will be busy worrying and second-guessing yourself and most likely miserable doing it.