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There are books that teach you about money.
Then there are books that teach you about money like no one else does.
@morganhousel's Psychology of Money falls in the latter.
18 lessons from the book
A thread
Then there are books that teach you about money like no one else does.
@morganhousel's Psychology of Money falls in the latter.
18 lessons from the book
A thread
1. Doing well with money is less about how smart you are and more about how you behave.
And behaviour is hard to teach.
And behaviour is hard to teach.
2. Focus less on specific individual case studies and more on broad patterns.
3. "Enough" isn't too little.
It is about realising that an insatiable appetite for more will push you to the point of regret.
It is about realising that an insatiable appetite for more will push you to the point of regret.
4. Those looking for secret in compounding, here it is:
Time
Time
5. The ability to stick around for a long time, without wiping out or being forced to give up, is what makes the biggest difference.
6. Your success as an investor will be determined by how you respond to punctuated moments of terror, not the years spent on cruise control.
7. Aligning money towards a life that lets you do
what you want,
when you want,
with who you want,
where you want,
for as long as you want,
has incredible return.
what you want,
when you want,
with who you want,
where you want,
for as long as you want,
has incredible return.
8. Humility, kindness and empathy will bring you more respect that the snazzy car.
9. Exercise is earning that big meal.
Wealth is turning down that meal and burning net calories.
It is hard, and requires self control.
Wealth is turning down that meal and burning net calories.
It is hard, and requires self control.
10. Aiming to be mostly reasonable works better than trying to be coldly rational.
11. The takeaways from history should be general, not specific.
12. Having a gap between what you can endure and what's emotionally possible is the room for error.
13. There is wisdom in coming to accept the reality of changing our minds.
14. Successful investing demands a price - price of volatility, fear, doubt, uncertainty and regret.
We get to see them when we deal with them in real time.
We get to see them when we deal with them in real time.
15. The bill always comes due.
16. Progress happens too slowly to notice, but setbacks happen too quickly to ignore.
17. The more we want something to be true, the more likely we are to believe a story that overestimates the odds of it being true.
18. Lastly, business, economics and investing are fields of uncertainty that are driven by decisions that couldn't be explained with clean formulas.
The best way to understand them is to learn them from @morganhousel's book Psychology of Money :)
The best way to understand them is to learn them from @morganhousel's book Psychology of Money :)
In case you don't want to have compounded regrets in your life about money, you can read the book here: https://amzn.to/2N82DCi
Thank you Morgan, for this super deep book about money that was super fun to read and understand, and of course, apply.
Fin.
Fin.
