Morgan Housel Does It Again
November 14, 2023
The most impactful financial literacy book I have ever read is not about money, even though that word is in the title. The title word that matters most is the one that precedes the word “money.” Technically it’s the one before the one that precedes it. That word is psychology. Morgan Housel’s 2020 The Psychology of Money hit like holding the first iPhone.
Whoa I remember thinking as I read how mighty German tanks were felled not by the enemy, but failure to plan for the mundane: cable insulation loving rodents. I was also introduced to Stanford professor Scott Sagan’s powerful “Things that have never happened before happen all the time” quote.
More Nuggest From The Psychology of Money
- Humility is power
- No one cares as much about your stuff as you
- The skills needed to build wealth are very different than the ones required to maintain wealth
- It can be logical to play the lottery
- Warren Buffett accumulated 99% of his wealth after his 65th birthday
Every niece and nephew got a copy that holiday season.
Same As Ever
Last week Housel released a follow up to The Psychology of Money. Called Same As Ever: A Guide to What Never Changes the book digs into just that: behaviors, particularly investing behaviors, that never change. This time the word money is absent from the title. No spoilers, but a few gems...
- Recessions are good
- Time wasting is good
- There are no permanent advantages
- Spend time on preparation not prediction
Hopefully none of my nieces and nephews read this column. So only you know what they are getting. I know exactly what they will be thinking when they unwrap their gift: Uncle Dan, same as ever.
Stay wise and well (and get to know the work of Morgan Housel).
