The Laws of Wealth Quotes

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The Laws of Wealth: Psychology and the Secret to Investing Success The Laws of Wealth: Psychology and the Secret to Investing Success by Daniel Crosby
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The Laws of Wealth Quotes Showing 1-12 of 12
“What I am proposing here is that you consistently bet on inconsistency. What I am asking you to do is bet unfailingly on the failures of human reason, which is a sure bet indeed. It is a painful thing to admit that education, intellect and willpower are inadequate to make you the type of investor you would like to be, but it’s not as painful as losing money.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“The psychology of individuals – warts and all – must be a central consideration in the formulation of any practical investing approach. The good news here is that others’ misbehavior will consistently and systematically create opportunities for you. The bad news is that you are prone to all of the same quirks and are just as likely, in the absence of strict adherence to the rules, to create the same opportunities for others.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“The fact that people are fallible is your biggest enduring advantage in the accumulation of greater wealth. The fact that you are just as fallible is the biggest impediment to that very same goal.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“Never underestimate the power of doing nothing.” – Winnie the Pooh”
Daniel Crosby, The Laws of Wealth: Psychology and the secret to investing success
“Imagine a world where you could gain more knowledge by reading fewer books, see more of the world by minimizing travel and get more fit by doing less exercise. Certainly, a world where doing less gets you more is highly inconsistent with much of our lived experience, but is just the way Wall Street Bizarro World operates. If we are to learn to live in WSBW (and we must), one of the primary lessons to be learned is to do less than we think we should.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“We often analogize our brains to computers – impartial storage apparatus tasked with housing and calling up information objectively. In reality, our brains are far more like beer goggles than supercomputers, which means that the intelligent investor must take precautions to ensure the emotion of the moment is not warping his sense of reality.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“[The] more confidence an expert had, the worse his predictions tended to be and that the more famous an expert was, the worse her predictions were on average. Only in Wall Street Bizarro World would we expect confident experts to be stupid and famous thought leaders to be deserving of infamy.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“The lessons for behavioral investors are unavoidable: you must automate your process wherever possible and avoid bias in the selection of people and processes. To do otherwise is to believe that professional money managers are actually above the fray of human bias, when the evidence shows us otherwise.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“I began this process without preconceptions of how the information would shake out. Five consistent types of behavioral risk emerged: Ego, Emotion, Information, Attention, and Conservation. The number of bad decisions we can make is limitless (have you seen reality TV?), but all behavioral risk has one or more of these five risk factors at its core.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“Let me say with all forthrightness that the [Rule-Based Behavioral Investing] model is not perfect and that some years following its principles won’t even beat a passive market cap weighted index. But what it does do is tilt the odds in your favor by consistently exploiting the psychological failings of your opponents in the market.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“If you’re relying on your gut rather than a rule-based approach to investing, you can be almost certain that your feelings of risk or safety are exactly the opposite of what they ought to be.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success
“Get rich fast and get poor fast are opposing sides of the same coin.”
Daniel Crosby, The Laws of Wealth: Psychology and the Secret to Investing Success