Take Advantage of Other Investors’ Mistakes

(Bloomberg Opinion) -- Raife Giovinazzo of Fuller & Thaler Asset Management, this week's guest on Masters in Business, explains how biases lead us to drive individual stock prices either too high or too low. Overreacting to news, both good and bad, leads to mispricing, and that creates market opportunities — assuming you, as an investor, can evaluate them objectively.

If this sounds like behavorial finance at work, it's because it is: Giovinazzo is portfolio manager and director of research in charge of Fuller & Thaler's behavioral small cap equity strategy.

He has the academic pedigree to match. At Princeton University, his undergraduate adviser was Daniel Kahneman, and his graduate school adviser at the University of Chicago was Richard Thaler. Both are giants in the field.

His favorite books are cited here; our conversation transcript is here (as of tomorrow).

You can stream/download the full conversation, including the podcast extras on iTunesBloombergOvercast and Stitcher. Our earlier podcasts can all be found on iTunesStitcherOvercast and Bloomberg.

Next week, we speak with Todd Harrison, founder and portfolio manager of Cb1 Capital, a hedge fund focusing on cannabinoid-based solutions and biopharmaceutical applications and therapies.

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