Morgan Housel - The Psychology of Money
Morgan Housel
Morgan Housel just wrote THE book you need to read. Matt calls it the best personal finance book he’s read. The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness, features short stories exploring the strange ways we think about money and teaches us how to make better sense of life's most important topics. In this episode, Housel shares insights into his own investing strategies, an event that shaped his outlook on risk, a story about a janitor who left behind millions of dollars to charity, and why behavior is the most important factor in mastering your financial life.
More about Morgan Housel
Morgan is a partner at the Collaborative Fund and former columnist at The Motley Fool and The Wall Street Journal. He's a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of The New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. Morgan has presented at more than 100 conferences in a dozen countries. He speaks about behavioral finance and history using storytelling to explore how investors deal with risk and how we can think about risk in a more productive way.
Key Topics
Intro (00:16)
Goal of writing The Psychology of Money (01:55)
What Housel learned about investing through skiing (04:17)
The story of a janitor who left behind millions (09:39)
The story of a millionaire that went bankrupt (13:40)
How to get your financial goal post to stop moving (16:09)
Housel’s definition of success (19:52)
Compounding (20:08)
The difference between being rich and being wealthy (24:52)
Aiming to be reasonable instead of rational (28:03)
Why Housel wrote about his own investing strategies (32:01)
How Housel describes his tone of writing (36:15)
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