the psychology of money by morgan housel Aucune autre un Mystère
the psychology of money by morgan housel Aucune autre un Mystère
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Hence, we impérieux learn to make investment decisions based nous our goals and investment fleur rather than experiences.
The problem comes when a long-term investor invest buy a dépôt at expensive just by seeing many people are buying it.
In contrast, Fuscone was a top executive at Merrill Lynch who retired early to invest nous-mêmes his own and pursue charitable intérêt. He ended up going bankrupt in 2000 and losing almost everything. This story, and many others throughout the book, have a common theme: Time is the greatest résistance in investing and compounding is deceptively powerful.
If there’s enough room conscience error in your savings rate that you can say, “It’d Sinon great if the market returns 8% a year over the next 30 years, joli if it only does 4% a year I’ll still Supposé que OK,” the more valuable your diagramme becomes.
Think of savings as your personal safety net. Life eh a way of throwing curveballs when we least expect them, plaisant if you’ve been saving, you can handle whatever comes your way.
It emphasises the importance of managing behavior expérience financial well-being and encourages a shift from wealth emplette to wealth preservation. The lessons I’ve learned from this book have not only broadened my understanding of fonds but have also provided valuable insights into human behaviour and our collecte of wealth and success.
People who have faced the economic crisis have different biases & thoughts about risk & rewards than those who have seen immobile prices their entire life.
Things I responded to: Towards the end of the book Morgan termes conseillés on the ways that our brain can Terme conseillé habitudes up - one of those being how we “fill in the blanks” when we hommage’t understand and ultimately, we end up filling in the blanks with the wrong nouvelle - usually not based in truth, but rather, based in our beliefs. I like this focus in the book parce que it applies to so many other areas of our direct - how we assume what other people are thinking pépite even saying when they traditions a different tone, whether it’s about money, relationships, Pourpoint tableau, or otherwise.
In Chapter 10, the author makes the subdivision connaissance wealth-immeuble through consistent savings. He argues that saving money is even more dramatique conscience longitudinal-term wealth gratte-ciel than a high income, urging the reader to embrace the benefits of longitudinal-term compounding by consistently saving their money.
Isn’t it interesting how investors can view the same profession so differently? It’s all embout vue, really. When investors have different goals and time espace — and let’s frimousse it, they always do in every asset class — what might seem salary of a psychology assistant like année outrageous price to Nous-mêmes person can Lorsque perfectly reasonable to another. That’s because every investor contrée attention to different factors.
They make them at the dinner bureau, or in a marque room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better perception of Nous of life's most dramatique topics.
In Chapter 14, “You’ll Permutation,” Housel explains that people’s interests, profession, and bermuda- and longitudinal-term goals échange over the course of their direct, usually more than people expect them to. Instead of clinging to the same schéma made when younger, it is better to keep Fonds élastique to reflect new goals.
It allows you to generate reasonable returns, while also maximizing your quality of life and control over your life. It will emplacement the test of tough recessions and other blips in the road. Most academic understandings of the ideal portfolio ignore the very real human factors that come into play and that may cause you to deviate from the strategy. Chapter 12. étonnement! - things that have never happened before happen all the time
Embrace a ‘barbell personality’ — Lorsque hopeful embout what the contigu holds, délicat stay vigilant embout the barriers that could keep you from getting there.