The Psychology of Money
1. People act from their experiences. Don't judge from yours.
2. Luck & Risk is all around you. They don't fit the stories you want to tell.
3. If you can't recognize when you have enough, you will soon have nothing.
4. Warren Buffet could have been an ordinary investor if not for his longevity.
Investing - if done well - is utterly boring.
It’s because the chief ingredient in the growth of a portfolio is time.
5. More than big returns, be finan...more
Don’t try and time the market. Dollar cost average. 85% of large cap fund managers did not beat the S&P 500. Stock picking isn’t the worst thing ever but know the odds are not in your favor. Doing some of that is ...more
Teh Hooi Ling’s review
The hardest financial skill is getting the goalpost to stop moving.
Lesson from Rajat Gupta of McK.
Freedom with your own time is the highest dividend money pays. The ability to do whatever you desire with your time. The ability to ...more
The Psychology of Money is one of the those books that lays the fundamentals required for investment and saving your money without pushing and punishing with a lot of jargons, technical terms, and ...more
1/ Ordinary folks with no financial education can be wealthy if they have a handful of behavioral skills that have nothing to do with formal measures of intelligence.
2/ Financial success, to an extent, is driven by luck irrespective of intelligence and effort
3/ Financial success is not hard science, unlike engineering or doctorate or any other profession. It is a soft skill, where how you behave is far more important than ...more
GENRE - NON FICTION / SELF HELP.
I haven't been a regular reader so far but I always had a craving and attraction to books,this book was suggested to me by my good old friend Mr. Aditya Salvi owing to my recklessness with finances 😂 However this book did help me reinvent my intrest for reading not to forget to mention this was the 11th book I have read so far and started reading this book in May 2021.This book also brought within me a craving for Non Fiction Philosophy Literature.
About the ...more
(1) No one's crazy : Your personal experiences with money make up maybe 0.00000001% of what's happened in the world, but maybe 80% of how you think the world works.
(2) Luck and Risk : Nothing is as good or as bad as it seems.
(3) Never enough : When rich people do crazy things.
(4) Confounding Compounding : $81.5 billion of Warren Buffet's $84.5 billion net worth cam ...more
It's a Timeless Lesson on Wealth, Greed, and Happiness, one of the best books on personal finance, by award-winning author Morgan Housel. This book is neatly written and contains a lot of wisdom and high-quality content.
Morgan Housel provides 19 stories in this book that explore the unusual ways people think about money. It includes observations on our relationship with money as well as information on how our financial thin ...more
The more obvious points:
Professional traders are about as good at it as random non-professional investors.
Compound interest is an ungodly cheat mode.
Getting your head on right is much more important than anything else you could do.
Prepare for the idea that ...more
On a side note, this book also made me realise that Hans Rosling’s Factfulness has such great advice on investing. We often get bogged down on what’s happening in the short run and do not appreciate the progress we’ve made in the long run. Progress happens too slowly to notice, but setbacks happen too quickly to ignore. And thus, in life and investing, optimism trumps pessimism in the long run.
1. The high ...more
First thoughts - A super easy and fun read, but it was a little different than what I had expected. Just going by the title of the book, I had anticipated that the author would probably take a deep dive into the behavioral economics and decision analysis of all aspects of money in our life but it turned out to be a rudimentary take (albeit an insightful one) on these topics.
This b ...more
1. Fall in love for saving. Don't ask why or for what is the purpose. Life is full of bouncers, so only saving can help you.
2. Don't believe all financial forecast
3, Always cut your coat in less than the clothes. Extra portion throw into few index funds.
4. Move toward - "that lets you do what you want, when you want, with who you want, where you want, for as long as you want" - This is financial freedom.
One may read chapter 19 and 20 to know what the book is all about. ...more
The book is divided into 20 chapters and focuses only on what people did with their money in different eras, like during World War II, the Great Depression, the fall of the Soviet Union, etc. The sections are filled with reports, figures that bored me to death.
Also, if you're a beginner-level reader, do not pick this one. But if you're deep into this genre and an American, then maybe you can. I can go for an eternity to point out my disliking about th ...more
I think this is a good financial goal to set up. At least this works for me. I have been recommending "Let's talk Money" to a lot of my friends. Now I have two books to recommend. There are some really valuable lessons that this book opened my mind to. Simple yet quite valuable. Moreover, the book is not just about financial learnings but is fil ...more
That was enough to stir my hunger and this book fed me well.
Everyone who is interested in a psychological approach to behavior with money will find something valuable here. I read mer ...more
Rather the only wa ...more
Link : https://youtu.be/Ja7lQaCna0w
It was fun and more than that all the ideas came from kids who are from lower middle class background of India with no idea of life hovering ahead. Wish to perform more stuff like this ...more
But only for readers who consider themselves novices with money. Anyone outside that category could possibly find themselves uninspired to get to the end. At the beginning of the 19th chapter, the author congratulates the reader for making it that far. *eyeroll*
Credit where due, the book is well written. It’s easy to read and understand. However, it fails to generate any interest or excitement about the subject. The author, I felt, consciously included se ...more
I might be biased but it is an enjoyable read. Also, it quoted Daniel Kahneman and Hans Rosling quite a lot; so if you like critical thinking and human behavior subjects (more than you li ...more
Might have to reread this shortie or read some kind of analysis — this was nothing new and not very groundbreaking. Not that it needed to be, but I was expecting more based on the raving reviews I've seen online.
Not bad, not great, just generally good things to know if you don't already or feel like you need a reminder. ...more
So now coming back to the book after the digression . The book is ...more
We all have a different outlook on life, because we all have led different lives. Different life experiences lead to different sets of views. Something that one side finds obvious is not very obvious to the other side. People don't always make financial decisions logically. Their personal history, view of the world, ego, incentives are all a part of their narrative.
So it's hard for many of us to intuitively grasp the subconscious reasoni ...more