Excess Returns
Money Delusions: Barry Ritholtz on the Elusive Definition of Money and How Not to Invest It
Mar 7, 2025
Barry Ritholtz, author of "How Not to Invest," dives into the psychology behind money and investing. He reveals that money should be viewed as a tool for personal freedom, not just as wealth. Childhood experiences heavily shape our money attitudes and behaviors. Ritholtz discusses the impact of market crashes across different life stages and warns against misinformation from social media. He advocates for humility in financial decision-making and highlights the importance of diversifying investments to avoid common pitfalls.
37:14
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Quick takeaways
- Money should be viewed as a tool for freedom rather than a goal, emphasizing its role in enhancing life quality through investment.
- Individual attitudes toward money are profoundly influenced by childhood experiences, shaping perspectives on financial risk and wealth management.
Deep dives
Understanding Money as a Tool
Money should be viewed as a tool rather than a goal, as it does not measure success or happiness. The discussion emphasizes that money is primarily a medium of exchange and not a store of value, challenging the common perception that saving money leads to wealth. Instead, the real value of money lies in its ability to provide freedom, allowing individuals to focus on what they truly want in life. By investing money rather than holding onto it in cash, one can make it work for them, thus enhancing their quality of life.
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