This chapter explores the dichotomy of change and permanence in investing, using the Sears case study to illustrate shifting paradigms. It emphasizes the need for flexible investment strategies, the significance of a 'margin of safety,' and the balance between optimism and realism. Through discussions of historical examples and psychological theories, it highlights the unpredictability of success and the potential benefits of a passive investment approach.
Every stock market valuation is a number from today multiplied by a story about tomorrow.
Morgan Housel is the best-selling author of The Psychology of Money and Same as Ever. Robert Brokamp interviewed Housel at our member event FoolFest. This episode is a cut of their conversation. They discuss:
- Why professional money managers often underperform the market.
- The relationship between success and luck for investors.
- Saving like a pessimist and investing like an optimist.
- What spreadsheets can’t tell you about spending.
- The benefit of losing money early in an investing journey.
Companies/Tickers Mentioned: TSLA
Host: Robert Brokamp
Guest: Morgan Housel
Producer: Ricky Mulvey
Engineer: Tim Sparks
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