

Episode 76: Meir Statman talks about his new book, A Wealth of Well-Being, host Rick Ferri
17 snips Nov 29, 2024
Meir Statman, Glenn Klimek Professor of Finance at Santa Clara University and author of "A Wealth of Well-Being," shares insights on behavioral finance and the emotional aspects of investing. He recounts his family's journey as refugees, emphasizing resilience. The discussion navigates the shift from traditional finance to understanding emotional biases that influence decision-making. Statman advocates for integrating well-being into financial strategies, critiquing the FIRE movement, and highlighting the balance between wealth and happiness.
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Statman's Early Life
- Meir Statman's parents were teenagers in Poland during the Nazi invasion.
- They escaped to Siberia, then Uzbekistan, where Statman was born in a refugee camp.
Academic Background
- Statman studied economics and finance at Hebrew University while Kahneman and Tversky conducted their work nearby.
- He was unaware of their research, highlighting the narrow focus of standard economics at the time.
Standard Finance vs. Reality
- Standard finance assumed investors were rational, computer-like, and immune to emotion.
- This model didn't match real-world observations, leading to the emergence of behavioral finance.