The Psychology of Money: Timeless lessons on wealth, greed, and happiness
When we pay special attention to a role model’s successes we overlook that their gains came from a small percent of their actions. That makes our own failures, losses, and setbacks feel like we’re doing something wrong. But it’s possible we are wrong, or just sort of right, just as often as the masters are. They may have been more right when they w... See more
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Engineers can determine the cause of a bridge collapse because there’s agreement that if a certain amount of force is applied to a certain area, that area will break. Physics isn’t controversial. It’s guided by laws. Finance is different. It’s guided by people’s behaviors. And how I behave might make sense to me but look crazy to you.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Let me suggest that you love your investments. This is not traditional advice. It’s almost a badge of honor for investors to claim they’re emotionless about their investments, because it seems rational. But if lacking emotions about your strategy or the stocks you own increases the odds you’ll walk away from them when they become difficult, what lo
... See moreMorgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Studying history makes you feel like you understand something. But until you’ve lived through it and personally felt its consequences, you may not understand it enough to change your behavior.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Luck and risk are both the reality that every outcome in life is guided by forces other than individual effort. They are so similar that you can’t believe in one without equally respecting the other. They both happen because the world is too complex to allow 100% of your actions to dictate 100% of your outcomes.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
There are 100 billion planets in our galaxy and only one, as far as we know, with intelligent life. The fact that you are reading this book is the result of the longest tail you can imagine.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Campbell summed it up: Having a strong sense of controlling one’s life is a more dependable predictor of positive feelings of wellbeing than any of the objective conditions of life we have considered.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
We can leave aside rich, but independence has always been my personal financial goal. Chasing the highest returns or leveraging my assets to live the most luxurious life has little interest to me.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Nassim Taleb explained: “True success is exiting some rat race to modulate one’s activities for peace of mind.” I like that.