THE PSYCHOLOGY OF MONEY (BY MORGAN HOUSEL)

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26 COMMENTS

  1. I don't get what he means with 'the price to pay' in relation to stock volatility. As long as you don't sell when your position is negative you don't realise a loss. If you can't stomach up- and downturns then you shouldn't invest in the first place.

  2. Morgan Housel said the best investment of all time was a company that took a piece of paper and put stuff in it and rolled it up and repeat. It was Altria the cigarette company. But he was way wrong as the best company investment of all time was Home Depot. A lousy one time 1000 dollar investment in 1981 just sitting there with nothing ever added since with a 27% annual rate of return would now be worth about 20 million. No tech stocks, nothing innovative just basic stuff people need.

  3. 🎯 Key Takeaways for quick navigation:

    00:00 🧠 Importance of Behavior in Financial Success
    – Behavior with money matters more than intelligence.
    – Financial success relies on soft skills and behavior rather than just knowledge.
    – Consistent saving and smart behavior often lead to wealth accumulation.
    01:05 💰 Understanding the Price of Investing
    – Investing, like purchasing, comes with a cost.
    – Concentrated portfolios with high returns are often volatile.
    – Higher returns usually accompany higher volatility and risks.
    04:09 🌟 Perceptions of Wealth and the Never-Ending Pursuit
    – Social comparison leads to feelings of inadequacy despite considerable wealth.
    – Envy perpetuates a cycle of constantly feeling "less than" compared to others.
    – Acknowledging when "enough is enough" is crucial for financial satisfaction.
    08:05 🤔 Understanding Different Perspectives in Money Management
    – Different backgrounds and experiences shape varying financial perspectives.
    – Acknowledging differences aids in making investment decisions aligned with personal goals.
    – Understanding diverse perspectives prevents blindly copying others' strategies.
    10:36 🦢 Preparing for Unforeseeable Events in Investing
    – Unpredictable events, termed "Black Swans," heavily impact financial markets.
    – Preparing for unforeseen disasters is more useful than trying to predict and react to them.
    – Mental and financial readiness for unforeseeable events is crucial in investing.
    12:34 🌈 The Influence of Pessimism in Investment Decisions
    – Pessimism often holds more sway due to evolutionary and psychological reasons.
    – Setbacks and tragedies garner more attention than slow-progressing advancements.
    – Awareness of asymmetric tendencies towards pessimism aids in more balanced investment decisions.

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  4. 2:50 It's not about stomaching it, it's about being okay with there being a chance of losing the money. Obviously you're not going all in or putting in so much money that it'll financially cripple you. Do not ever do that. Once your emotions go into investing, that is when it becomes gambling.

  5. >>>>VENTURING, into the trading world without the help of a PROFESSIONAL, trader and expecting profit is like turning water into wine you would need a miracle, that's why i trade with Mrs Stephanie morgann, her skills set exceptional?

  6. There are quite a few channels on YouTube like this… they NEVER refer to women, the world is entirely male to them. Haven’t seen a female character in the whole thing so far… investors are all men to this channel. I’m not sure what this says about the channel owner – but it seems super weird.

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