Accepting reality is crucial, as ignoring unknown elements can lead to negative consequences. People often overestimate their abilities while underestimating the influence of luck. Our inclination towards stories is tied to our brain's response, as they enhance experiences through synchronization with the storyteller, releasing dopamine that fosters pleasure and improves memory and attention retention. Furthermore, stories can induce oxytocin release, fostering trust and empathy. Therefore, the most compelling story prevails, and it's essential to recognize that unseen risks can significantly impact outcomes.
On today’s episode, Clay shares the most important lessons he’s learned from Morgan Housel.
Morgan Housel is a partner at The Collaborative Fund. He's the New York Times Bestselling author of The Psychology of Money and Same As Ever. His books have sold over 4.5 million copies and have been translated into more than 50 languages. He also serves on the board of directors at Markel.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
01:24 - Why the best story wins.
09:35 - Why the biggest risk is the one nobody sees coming.
23:03 - The seduction of pessimism and why it pays to be an optimist.
27:18 - The importance of understanding ‘enough’.
44:42 - The importance of patience and investing with a long time horizon.
52:34 - The impact of debt.
And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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