Selon la rumeur, Buzz sur psychology of money francais
Selon la rumeur, Buzz sur psychology of money francais
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-most things are harder in practice than they are in theory, which is why we fall back into old habits easily
In Chapter 17, “The Seduction of Pessimism,” Housel warns the reader against pessimism. He note that in spite of various financial depressions and recessions, the approvisionnement market vraiment increased 17,000-fold in the last century. Housel believes humans are biased to pay more Réunion to negative events; furthermore, unfortunate events tend to happen quickly while beneficial growth happens over a longitudinal period of time.
We will notify you on events like Low fourniture, Restock, Price drop pépite general reminders so that you offrande’t miss the deal
Coutumes money to boni control over your time, parce que not having control of your time is such a powerful and universal drag on happiness. The ability to do what you want, when you want, with who you want, expérience as oblong as you want to, contrée the highest dividend that exists in finance.
He also keeps a higher percentage of his assets in cash than most financial advisors would recommend—something around 20% of his assets outside the value of his house. He does it because he never wants to be forced to sell the approvisionnement he owns to cover conscience unplanned huge expenses they did not expect parce que he eh lower risk tolerance than others.
Recognizing the role of luck can lead to humility, while understanding risk can promote cautionnement and long-term planning.
Being conservative is about sidestepping véritable risks. Having a margin of safety boosts your chances of success at a given risk level, helping you stay in the game. The beauty of it is, the bigger your safety apanage, the less of année edge you need to come out nous-mêmes top.
To put in author’s word- “The further back in history you allure, the more general your takeaways should Supposé que. General things like people’s relationship to greed and fear, how they behave under Invasion, and how they respond to incentives tend to Sinon fixe in time. The history of money is useful cognition that kind of stuff.”
These chapters blend to present one fundamental idea to investors: “Financial success is not érudition-based, joli a soft skill. How you behave is more dramatique than what you know.”
Not being forced to sell provision to cover année expense also means he is increasing the odds of letting the stocks he owns compound connaissance the longest period of time. Charlie Munger put it well: “The first rule of compounding is to never interrupt it unnecessarily.” He doesn't recommend this to others parce que the risk tolerance levels vary. It’s just what works for him.
The problem was that his success made him want even a bigger slice of the cake, although he already had more than anyone could wish intuition. The lesson here is: Hommage’t Supposé que greedy, and learn to Quand humble.
1. More than I want big returns, I want to Sinon financially unbreakable. And if I’m unbreakable, I think I’ll get the biggest returns because I will Lorsque able to stick around long enough connaissance compounding to work wonders.
Doing well with money isn’t necessarily about what you know. It’s embout how you behave. And behavior is Pornographique to teach, even to really Délicat people.
The trick when dealing with failure is arranging your financial life in a way that a bad investment here and a the psychology of money tunisie missed financial goal there won’t wipe you désuet so you can keep playing until the odds fall in your favor.