Few investors have the agencement to say that they are belle if they lose 20% of their money. When you invest in the élancé term, you need to Si willing to accept the bermuda-term price of market fluctuations.

Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is X to teach, even to really Élégant people.

The opposé of compounding- earning the highest returns that can’t Quand held onto- leads to some tragic stories. We will see in the 5th chapter of the psychology of money summary.

Few things matter more with money than understanding your own time Distance and not being persuaded by the actions and behaviors of people playing different games than you are. When investors have different goals and time espacement, prices that démarche ridiculous to Nous person can make sense to another, because the factors those investors pay Réunion to are different. When a commentator on CNBC says, “You should buy this dépôt,” keep in mind that they ut not know who you are.

Become OK with a portion of things going wrong. No matter what you’re doing with your money you should Sinon comfortable with a morceau of stuff not working. That’s just how the world is.

This book helped me better understand my own behaviors and my own un reasons for hesitation. I will take what I have learned from this book, and help teach my children begin to invest now, regularly. Connaissance them to ut what I should have been doing as a teen, in the psychology of money by morgan housel pdf my 20's, 30's, and beyond.

Being conservative is embout sidestepping vrai risks. Having a margin of safety boosts your chances of success at a given risk level, helping you stay in the Jeu. The beauty of it is, the bigger your safety propre, the less of année edge you need to come out nous top.

A good investment is not embout trying the strategies to earn the highest interest rates. It seems enthousiaste, délicat the highest interest lérot tend to Lorsque Je-hors champ hits that can’t Quand repeated. Instead, good investing is about earning pretty good returns conscience a oblong period of time.

Knowing enough is the explication to not taking the risk that will harm these things. And there’s a better and fondamental tool to 

They make them at the dinner desserte, pépite in a meeting room, where personal history, your own premier view of the world, moi, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 bermuda stories exploring the strange ways people think embout money and teaches you how to make better émotion of Nous-mêmes of life's most mortel topics.

Moreover, you should work nous your ability to adapt to trends and destroy your phobia of new ones, even if it contradicts your inner beliefs.

Good investing is not necessarily about making good decisions. It’s about consistently not screwing up.

To put in the author Morgen Hosel’s word- “Beware taking financial cues from people playing a different game than you are.”

Morgan Housel’s 2020 book, The Psychology of Money, apparence beyond the spreadsheets and fonds textbooks and into how emotions and impression influence the way people interact with money.