The Psychology of Money

History never repeats itself, man always does.

Contents

No one is crazy

Your personal experiences with money make up maybe 0.000001% of what is happened in the world, but maybe 80% of how you think the world works.

Luck & Risk

Nothing is as good or as bad as it seems.

“It’s possible to statistically measure whether some decisions were wise. But in the real world, day to day, we simply don’t. It’s too hard. We prefer simple stories, which are easy but often devilishly misleading.”

Risk and Luck are just doppelgängers

Be careful who you praise and admire. Be careful who you look down upon and wish to avoid becoming.

Never Enough

  1. The hardest financial skill is getting the goalpost to stop moving
  2. Social comparison is the problem
  3. “Enough” is not too little
  4. There are many things never worth risking, no matter the potential gain

Confounding Compounding

Reasonable > Rational

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