The Psychology of Money

by Morgan Housel

“A genius is the man who can do the average thing when everyone else around him is losing his mind.”

financial success is not a hard science. It’s a soft skill, where how you behave is more important than what you know.

Therefore, focus less on specific individuals and case studies and more on broad patterns.

There is no reason to risk what you have and need for what you don’t have and don’t need.

The ability to stick around for a long time, without wiping out or being forced to give up, is what makes the biggest difference.

Controlling your time is the highest dividend money pays.

in the real world, people do not want the mathematically optimal strategy. They want the strategy that maximizes for how well they sleep at night.

Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence, which can happen in an instant.

At some point you have to choose between being happy or being “right.”