Cash Is King: Morgan Housel's Surprising Financial Strategy

9 snips

Oct 26, 2023

Morgan Housel, an award-winning journalist and author, discusses the importance of preparation over prediction in personal finance. He emphasizes the significance of long-term stability and financial resilience. The podcast explores the dangers of chasing shiny objects in investing, allocation strategies during economic crises, and the concept of market values. They also touch upon personal finance strategies, including never selling and investing in long-term assets.

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Introduction

00:00 • 3min

The Seriousness of Money and Recession

03:23 • 8min

The Detriment of Chasing Shiny Objects in Investing

11:30 • 2min

Allocation Percentages and Opportunities in Times of Crisis

13:03 • 13min

The Importance of Not Selling and Personal Finance Strategies

25:57 • 3min

Today we’re talking with journalist and author Morgan Housel, his book The Psychology of Money is one of my all-time favorites. His message is straightforward, preparation beats trying to predict the market every time.

Morgan Housel, is an award winning writer and partner at The Collaborative Fund and a former Wall Street Journal columnist. His wealth of experience and insights into the world of finance and economics make for a fascinating discussion.

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It was great to hear how much we're on the same wavelength when it comes to our views on risk aversion in personal finance. Morgan firmly believes in a patient and sustainable approach, steering clear of the allure of quick riches. While it might seem less flashy on paper, it’s important to understand that long-term stability and financial resilience should be our ultimate goal.

In this conversation, you’ll enjoy 3 BIG things:

Predictions vs. Preparation: We explore how news stories can impact the economy and why economic forecasts often fall short. Morgan makes a compelling case for focusing on preparation rather than following predictions.
Financial Resilience: Morgan provides valuable insights on maintaining financial resilience, including minimal debt, a significant cash reserve, and a portfolio of long-term assets built to endure surprises.
Innovation in Challenging Times: Explore the correlation between innovation and challenging times, particularly during economic depressions. Morgan elaborates on the rapid progress of solutions in such circumstances.

This episode was recorded last year, since then Morgan has a new book coming out November 7th - ‘Same as Ever’ he’ll also be coming back on the show in the next few weeks to talk about it, but in the meantime go back and check out a YouTube video we made about ‘The Psychology of Money’. Also check the episode we did with Financial Samurai Sam Dogen. You can go check Morgan out at @morganhousel on Twitter & morganhousel on Instagram.

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