Stray Reflections Wisdom from Morgan Housel
Feb 9, 2024
Morgan Housel, author of The Psychology of Money and Same as Ever, discusses timeless lessons from human behaviors that never change. Topics include guilt associated with wealth, responsibility of wealth towards the community, maximizing endurance in investing, the inevitability and uncertainty of major events, the power of storytelling in evaluating companies, the impact of major events and social media on different generations, and the fear of death and the desire for financial security.
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Carnegie's Wealth Guilt
- Andrew Carnegie felt guilty about wealth despite creating societal value.
- Morgan Housel argues guilt is understandable but wealth creation benefitted society widely.
Treat Money Like A Tool, Not A Drug
- Treat money as a tool for independence and purpose, not as an endless craving.
- Find respect and identity outside wealth to prevent money from becoming an obsession.
Prioritize Durability Over Peak Returns
- Invest for endurance rather than chasing top annual returns.
- Dollar-cost average into broad index funds so compounding works for decades.