Just as a reminder. I am reviewing the chapters of The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel. I think this is a great book and I am really enjoying it. I thought i would share some quick summary notes for each chapter on hive for those who do not wish to read it. There is some spoilers so do not read on if you plan on reading the book on its own.
Quick recap of the whole book from google books.
Doing well with money isn't necessarily about what you know. It's about how you behave. And behavior is hard to teach, even to really smart people.
The field of finance, including investment, personal finance, and business decisions, is typically presented as a mathematical one, where we are given precise instructions based on data and formulas. However, people in the real world don't use spreadsheets to make important financial decisions. At the dinner table or in the conference room, people mix in their own backgrounds, perspectives, egos, prides, marketing strategies, and peculiar motivations to come up with these decisions.
Chapter 5- Getting Wealthy Vs. Staying Wealthy
Good investing is not necessarily about making good decisions. It’s about consistently not screwing up.
The Author, Morgan Housel, says money simply comes down to "survival".
You have to learn how to survive. Again we look to Buffet. He learned to survive. He is always there.
You have to be happy with these things to survive.
More than 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.
Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.
- A barbelled personality — optimistic about the future, but paranoid about what will prevent you from getting to the future — is vital.
I never have had much crypto but in 2019 I did have the most I had ever had. I struggled holding onto it though. I hope now i have learned how to hold on a little better.
I want to get and STAY wealthy someday.
The market keeps winning. Sometimes you have to stay in a long time or survive but survive and you will win eventually.
Also, any survivor fans out there. Season 45 is on right now. I am looking forward to it. I am 3 episodes in but will not give any spoilers on this post. Just let me know if you are watching.