Morgan Housel, New York Times Bestselling author of The Psychology of Money, discusses the emotional aspects of money, the human tendency to compare wealth, the impact of market downturns, the surprising journey to wealth, the power of encouragement in education, the timeless nature of human behavior, playing 'Fuck Mary Kill' with Warren Buffett, Charlie Munger, and George Soros, and excitement for his engaging book.
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Quick takeaways
The pursuit of wealth is often driven by a desire for status rather than true happiness.
Earning or losing great amounts of money can amplify existing characteristics and values in individuals.
Social media has had a significant impact on investing, facilitating the rise of meme stocks and increasing the speed and intensity of financial bubbles.
Deep dives
The Pursuit of Wealth and its Deeper Meaning
The podcast episode explores the idea that the pursuit of wealth is not just about money, but about something much deeper. The guest, Morgan Hausal, emphasizes that humans are wired for status and not for happiness. Wealth is viewed as a tangible form of status, and people measure their wealth and self-worth relative to others. However, this constant pursuit of money and comparison with others causes anxiety and prevents people from feeling satisfied, even as their wealth increases. Hausal highlights the importance of understanding the emotional and irrational relationship between wealth, self-worth, and happiness.
The Impact of Money on Identity and Personality
The podcast delves into the question of whether earning or losing great amounts of money fundamentally changes a person or simply exposes parts of their character that were already there. The guest shares examples of individuals like Elon Musk, Donald Trump, and Jeff Bezos, whose personalities and behaviors seemed to change with their accumulation of wealth. The discussion suggests that earning money often amplifies existing characteristics and values, while losing money can be emotionally and psychologically catastrophic for individuals, eroding their sense of identity and confidence. The pursuit of money, in this context, becomes an endless chase for the dopamine rush of increased wealth.
The Influence of Social Media on Investing and Money Perception
The podcast explores the impact of social media on investing and money perception. It highlights how social media has facilitated the rise of meme stocks, cryptocurrencies, and intense pessimism in financial news media. Social media enables individuals to curate their own information sources and tribes, reinforcing pre-existing views and reducing uncertainty. The guest discusses how social media has increased the speed and intensity at which bubbles form and burst in the financial markets. It also raises questions regarding the role of luck in trading success and emphasizes the importance of a long-term, sustainable investment approach instead of day trading or chasing short-term gains.
The Challenges of Wealth and Raising Kids
The speaker shares the challenges they faced after unexpectedly becoming wealthy due to the success of their book. They discuss the importance of not spoiling their children and the need for them to understand the value of hard work. The speaker emphasizes the goal of raising good functioning adults and how their financial choices, like living in the same house and driving the same car, are motivated by this goal.
Money and Happiness
The podcast explores the speaker's personal experience with wealth and happiness. They discuss how their increased wealth did not significantly impact their day-to-day happiness. They emphasize that happiness is more closely linked to relationships, health, and personal well-being, rather than financial wealth. The speaker mentions that money can bring contentment, but it does not guarantee happiness. They also highlight the importance of understanding the intangible value of creative work and human connection.
Everybody wants to get rich. But is the pursuit of wealth really about the money, or are we actually chasing something much deeper?
These are just a couple of the fun ideas I toss around in this episode with Morgan Housel, New York Times Bestselling author of the smash hit, The Psychology of Money, which has sold more than four million copies worldwide.
We’ll dig deep to uncover our relationship with money, answer the timeless question “Will getting rich make me happy?” and share some of Morgan’s best investing tips.
So put away your spreadsheets, step away from the credit card, and for god’s sake stop trading crypto for five seconds, and settle in for this one. We might just make you filthy fucking rich.
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