Read on Twitter
Me ha gustado el Psychology of Money de @morganhousel.
https://www.amazon.es/dp/B084HJSJJ2/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1
Yo al menos me he sentido identificado con varias partes. Algunas notas.
https://www.amazon.es/dp/B084HJSJJ2/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1
Yo al menos me he sentido identificado con varias partes. Algunas notas.
Luck and risk are siblings. They are both the reality that every outcome in life is guided by forces other than
individual effort.
individual effort.
It gets dangerous when the taste of having more—more money, more power, more prestige—increases ambition
faster than satisfaction.
faster than satisfaction.
His skill is investing, but his secret is time. That’s how compounding works.
Good investing isn’t necessarily about earning the highest returns, bc the highest returns tend to be 1off hits that can’t be repeated. It’s about earning good returns that you can stick with and which can be
repeated for the longest period of t. That’s when compounding runs wild
repeated for the longest period of t. That’s when compounding runs wild
Capitalism is hard. But part of the reason this happens is because getting money and keeping money are two
different skills. Getting money requires taking risks, being optimistic, and putting yourself out there. But
keeping money requires the opposite of taking risk. (1/2)
different skills. Getting money requires taking risks, being optimistic, and putting yourself out there. But
keeping money requires the opposite of taking risk. (1/2)
It requires humility, and fear that what you’ve made can be
taken away from you just as fast. It requires frugality and an acceptance that at least some of what you’ve made
is attributable to luck, so past success can’t be relied upon to repeat indefinitely. (2/2)
taken away from you just as fast. It requires frugality and an acceptance that at least some of what you’ve made
is attributable to luck, so past success can’t be relied upon to repeat indefinitely. (2/2)
More than I want big returns, I want to be financially unbreakable. And if I’m unbreakable I actually think I’ll
get the biggest returns, because I’ll be able to stick around long enough for compounding to work wonders.
get the biggest returns, because I’ll be able to stick around long enough for compounding to work wonders.
Planning is important, but the most important part of every plan is to plan on the plan not going according to
plan.
A plan is only useful if it can survive reality. And a future filled with unknowns is everyone’s reality.
plan.
A plan is only useful if it can survive reality. And a future filled with unknowns is everyone’s reality.
Think of it like this, and one of the most powerful ways to increase your savings isn’t to raise your income. It’s
to raise your humility.
to raise your humility.
Savings in the bank that earn 0% interest might actually generate an extraordinary return if they give you the
flexibility to take a job with a lower salary but more purpose, or wait for investment opportunities that come
when those without flexibility turn desperate.
flexibility to take a job with a lower salary but more purpose, or wait for investment opportunities that come
when those without flexibility turn desperate.
Academic finance is devoted to finding the mathematically optimal investment strategies. My own theory is that,
in the real world, people do not want the mathematically optimal strategy. They want the strategy that
maximizes for how well they sleep at night.
in the real world, people do not want the mathematically optimal strategy. They want the strategy that
maximizes for how well they sleep at night.
The historical odds of making money in U.S. markets are 50/50 over one-day periods, 68% in one-year periods,
88% in 10-year periods, and (so far) 100% in 20-year periods.
88% in 10-year periods, and (so far) 100% in 20-year periods.
If u view “do what you love” as a guide to a happier life, it sounds like fortune cookie advice. If u
view it as the thing providing the endurance needed to put the quantifiable odds of success in your favor, u
realize it should be the most important part of a financial strategy
view it as the thing providing the endurance needed to put the quantifiable odds of success in your favor, u
realize it should be the most important part of a financial strategy
It sounds trivial, but thinking of market volatility as a fee rather than a fine is an important part of developing the
kind of mindset that lets you stick around long enough for investing gains to work in your favor.
kind of mindset that lets you stick around long enough for investing gains to work in your favor.
Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure,
which can happen in seconds, and loss of confidence, which can happen in an instant.
which can happen in seconds, and loss of confidence, which can happen in an instant.
Being able to wake up one morning and change what you’re doing, on your own terms,
whenever you’re ready, seems like the grandmother of all financial goals. (1/2)
whenever you’re ready, seems like the grandmother of all financial goals. (1/2)
Independence, to me, doesn’t mean
you’ll stop working. It means you only do the work you like with people you like at the times you want for as
long as you want. (2/2).
Fin-
you’ll stop working. It means you only do the work you like with people you like at the times you want for as
long as you want. (2/2).
Fin-
