{"id":362,"date":"2021-03-23T21:38:36","date_gmt":"2021-03-24T01:38:36","guid":{"rendered":"https:\/\/stephentully.com\/?p=362"},"modified":"2021-03-23T21:38:37","modified_gmt":"2021-03-24T01:38:37","slug":"psychology-of-money-morgan-housel-brief-book-review","status":"publish","type":"post","link":"https:\/\/stephentully.com\/?p=362","title":{"rendered":"Psychology of Money (Morgan Housel) – Brief Book Review"},"content":{"rendered":"\n

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Psychology\nof Money (Morgan Housel) \u2013 Brief Book Review (February 2020)<\/p>\n\n\n\n

Morgan Housel\u2019s \u201cPsychology\nof Money\u201d<\/em> is easy to read and typical to his style in sharing his point of\nview through specific stories.  This is a compact book on behavioral\nfinance; however, not relying on new ground. One of the main themes is that\nfinancial success is not a hard science that relies on complex math-based\nskills. It is a soft skill where success relies more on our behavior than what\nwe know. He explores behavioral biases humans have when it comes to money,\noverreliance on studying extreme examples of success and failure, how humans\nassess risk, and several others. <\/p>\n\n\n\n

The stories are\nmeant to re-enforce the role our behavior plays in investment and life success\nand outlines ways we can better frame decisions we make. Some of the more\nuseful discussions were discussions on compounding, \u201cThe first rule of\ncompounding is to never interrupt it unnecessarily.\u201d<\/em>; the role that \u201ctails\u201d\nplay in outcomes, \u201cTails drive everything.\u201d<\/em>; and timely, \u201cBubbles\nform when the momentum of short-term returns attracts enough money that the\nmakeup of investors shifts from mostly long-term to mostly short-term.\u201d<\/em>\nAlso, what we learn when we are surprised by something, we want to make sure we\ndon\u2019t repeat that \u201cmistake\u201d. However, \u201c\u2026the world is difficult to\nanticipate. That\u2019s the correct lesson to learn from surprises: that the world\nis surprising. We should use past surprises as an admission that we have no\nidea what might happen next.\u201d<\/em><\/p>\n\n\n\n

Overall, there\nis no new material in this book. However, Morgan does a great job of breaking\ndown some of the key behavioral limitations all people face and how we can make\nbetter decisions in regard to investing, saving, and succeeding. This is a\ngreat book also for a teenager or those just learning about finance\/investing. <\/p>\n\n\n\n

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Psychology of Money (Morgan Housel) \u2013 Brief Book Review (February 2020) Morgan Housel\u2019s \u201cPsychology of Money\u201d is easy to read and typical to his style in sharing his point of view through specific stories.  This is a compact book on behavioral finance; however, not relying on new ground. One of the main themes is that […]<\/p>\n","protected":false},"author":1,"featured_media":363,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/stephentully.com\/index.php?rest_route=\/wp\/v2\/posts\/362"}],"collection":[{"href":"https:\/\/stephentully.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stephentully.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stephentully.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stephentully.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=362"}],"version-history":[{"count":2,"href":"https:\/\/stephentully.com\/index.php?rest_route=\/wp\/v2\/posts\/362\/revisions"}],"predecessor-version":[{"id":365,"href":"https:\/\/stephentully.com\/index.php?rest_route=\/wp\/v2\/posts\/362\/revisions\/365"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stephentully.com\/index.php?rest_route=\/wp\/v2\/media\/363"}],"wp:attachment":[{"href":"https:\/\/stephentully.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stephentully.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stephentully.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}