The Next Big Idea Daily "Same as Ever: A Guide to What Never Changes" by Morgan Housel
Dec 20, 2023
Morgan Housel, author of The Psychology of Money, explores the power of storytelling, the impact of expectations on happiness, and the cycle of greed and fear in decision-making. He also discusses the relationship between financial stability and recessions, the role of incentives in driving innovation, and the importance of urgency in problem-solving.
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Buffett's Candy Bar Example
- Morgan Housel recounts Warren Buffett pointing out that Snickers was the top candy bar in 1962 and still was later, underscoring continuity in human behavior.
- The brief story illustrates how familiar patterns persist despite big external changes.
Timeless Human Behavior
- Morgan Housel argues that though technology and geopolitics change, human behaviors like greed and fear remain recognizable across time.
- Observing recurring human patterns helps predict how people will behave in unfamiliar futures.
Story Beats Correctness
- Housel claims the best story wins more often than the best or most rational idea because people respond emotionally to narratives.
- Being a compelling storyteller can amplify the reach and impact of ideas regardless of factual superiority.