Investment Thesis

  • Yannick Coulon


The implementation of ratios is useless if applied irrationally. As a consequence, the principles behind an investment thesis are outlined, adding a touch of behavioral finance to counter investment biases.

Possible investment theses for Alibaba, Amazon and Walmart illustrate the concept.

The key behavioral biases then conclude the chapter.


Behavioral finance Behavioral biases Investment thesis Target price Rational investing 

References and Further Reading

  1. Bachelard, Gaston. 1949. Le rationalisme appliqué. Paris: Presses universitaires de France.Google Scholar
  2. Barber Brad, M., and Odean Terrance. November/December 1999. The Courage of Misguided Convictions. Financial Analysts Journal 55 (6): 41–55.Google Scholar
  3. Coulon, Yannick. March 2016. Guide pratique de la finance comportementale. Gualino: Côté finance.Google Scholar
  4. ———. September 2018, L’essentiel des ratios financiers. Maxima Laurent du Mesnil.Google Scholar
  5. Fox, Justin. 2009. The Myth of the Rational Market, a History of Risk, Reward, and Delusion on Wall Street. Harper Business.Google Scholar
  6. Haldane, Andrew. September 2010. Patience and Finance. Beijing: Oxford China Business Forum.Google Scholar
  7. Jones, Bill, Jones Terry, Kocken Theo, and Timlett Ben. March 2016. (USA). Boom, Bust, Boom. TV Documentary.Google Scholar
  8. Kahneman, Daniel, and Tversky Amos. 2000. Choices, Values, and Frames. Russell Sage Foundation. Cambridge University Press.Google Scholar
  9. Kindleberger, Charles P. 2005. Manias, Panics, and Crashes, A History of Financial Crises, 5th ed. Wiley.Google Scholar
  10. Shefrin, Hersch. 2002. Beyond Greed and Fear. Financial Management Association Survey and Synthesis Series, Oxford University Press.Google Scholar
  11. Shefrin, Hersch, and Statman Meir. July 1985. The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence. Journal of Finance. Wiley.Google Scholar
  12. Shiller, Robert. 1998. Human Behavior and the Efficiency of the Financial System. NBER Working Paper Series. National Bureau of Economic Research, Inc.Google Scholar
  13. Solnik, Bruno. 1988. International Investments. Addison Wesley Longman Publishing Co.Google Scholar
  14. Stevenson, Robert Louis. 1886. Strange Case of Dr. Jekyll and Mr. Hyde. London: Longmans, Green and Co.Google Scholar
  15. Thaler, Richard H. 2005. Advances in Behavioral Finance, Vol. II. Russell Sage Foundation, Princeton University Press.Google Scholar

Copyright information

© The Author(s) 2020

Authors and Affiliations

  • Yannick Coulon
    • 1
  1. 1.Brest Business SchoolBrittanyFrance

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