The Psychology of Money: Timeless lessons on wealth, greed, and happiness
The point is that in many aspects of life, the existence of a past investment doesn’t mean we should continue on the same path; in fact, in a rational world, the prior investment is irrelevant.
Dan Ariely • Dollars and Sense
I have no clue what the stock market will do next year (or any year). But I’m very confident about people’s penchant for greed and fear, which never changes. So that’s what I spend my time thinking about. I have no idea who will win the next presidential election. But I’m confident about the ways people’s attachment to tribal identities influences
... See moreMorgan Housel • Same as Ever: A Guide to What Never Changes
The more precise you try to be, the less time you have to focus on big-picture rules that are probably more important. It’s less about admitting that we can’t forecast, and more about acknowledging that if your forecast is merely good enough, you can invest your time and resources more efficiently elsewhere.
Morgan Housel • Same as Ever: A Guide to What Never Changes
Second, Pascal’s Wager. You begin with something that’s obvious. But because it’s hard to accept, you have to keep reminding yourself: We don’t know what’s going to happen with anything, ever, over any period. And so it’s inevitable that a certain percentage of our decisions will be wrong. There’s just no way we can always make the right decision. ... See more