The Psychology of Money by Morgan Housel
Nice book! Everyone who is starting to venture into the world of investing should give this book a read.
The book is divided into little chapters. Each chapter is like an article. Very concise. And the book itself is a fast read. Probably one can read it over one or two weekends.
The book is full of quotes and insight. The basic premise of Housel is to keep investing simple. Invest in index funds. Buy a house to live in, and not as an investment. Don't try to beat the market. Have a simple life. Save, save, save. Save for that unexpected event, and not with some goal in mind. Don't be flashy, don't overspend. Know the difference between investing for the long term and short-term trading. Very good advice all this, according to me.
And lots of nice quotable quotes throughout the book.
Charlie Munger, āI did not intend to get rich. I just wanted to get independent.ā
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.
In a world where intelligence is hyper-competitive and many previous technical skills have become automated, competitive advantages tilt toward nuanced and soft skillsālike communication, empathy, and, perhaps most of all, flexibility.
Controlling your time is the highest dividend money pays.
Capitalism is hard. ... getting money and keeping money are two different skills.
āHaving an āedgeā and surviving are two different things: the first requires the second. You need to avoid ruin. At all costs.ā - Nassim Taleb.
Bubbles form when the momentum of short-term returns attracts enough money that the makeup of investors shifts from mostly long term to mostly short term. .. Bubbles arenāt so much about valuations rising. Thatās just a symptom of something else: time horizons shrinking as more short-term traders enter the playing field.















