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Bet Against Human Nature

Jun 30, 2014 - Forbes

Here's a compelling question: Can you profit from others' irrational investment mistakes?

Richard H. Thaler, a professor of behavioral science and economics at the University of Chicago and coauthor of the bestseller Nudge , thinks so. He's also a principal in San Mateo, Calif.-based Fuller & Thaler Asset Management, which manages more than $2 billion by using insights from the study of investor behavior to identify "mispriced" stocks.

Behavioral pioneers such as the 68-year-old Thal...