Motley Fool Money Morgan Housel and History’s Unending Loop
Nov 5, 2023
Morgan Housel, a bestselling author and longtime contributor, dives into the timeless patterns of human financial behavior. He discusses how fewer economic downturns can mislead optimism while true optimists embrace a messy future. Cautionary tales from companies that expanded too quickly provide valuable lessons, and Housel shares insights on storytelling’s pivotal role in finance, highlighted by Warren Buffett's mastery. This chat is rich with wisdom on investing, history, and the unpredictable nature of technology.
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History Over Forecasts
- Morgan Housel shifted from reading forecasts to history after realizing the poor track record of predictions.
- He emphasizes focusing on unchanging human behaviors instead of trying to predict the unpredictable.
Recurring Patterns in Economic Crises
- Housel recounts reading "The Great Depression, A Diary" and noticing recurring patterns in economic crises across different time periods.
- This observation solidified his belief in the cyclical nature of history and the importance of understanding consistent human behavior.
Filtering Information
- Filter information by its long-term relevance; ask yourself if you'll still care about it in a year or five.
- Prioritize information with a longer shelf life, like behavioral patterns, over short-term news.
