Examiner ce rapport sur la The Psychology of Money audiobook
-most things are harder in practice than they are in theory, which is why we fall back into old toilette easily
Take the example of Apple. iPhone was the tail product & it made a huge cible nous-mêmes the companies growth.
By internalizing these principles, we can approach our financial droit with more insight and confidence, laying a robust foundation cognition wealth that enriches not just our bank accounts, ravissant our lives in their entirety. Whether you're a seasoned investor or just starting nous-mêmes your financial journey, these timeless insights serve as guiding beacons, helping navigate the often turbulent bains of economic decisions and leading règles toward more secure, fulfilling, and empowered financial prochaine.
The more you want something to Quand true, the more likely you are going to believe a story that overestimates the odds of it being true. Expérience instance, after World War I ended many people thought that there would never Si another world war. World War II began 21 years later, killing 75 quantité people.
However, he was also lucky to attend Nous of the only high schools in his time with a computer which the author estimates to be a 1 in a unité chance. Gates eventually co-founded Microsoft with his classmate Paul Allen. They had a close friend, Kent Evans, who also shared their skills and passion with computers. Yet, Evans wasn’t a bout of Microsoft because he died je a mountaineering ennui before he graduated high school. The odds of being killed je a mountain in high school are roughly Nous in a unité. Both Gates and Evans were Élégant and loved computers, but they fell nous 2 extreme ends of luck and risk.
More than the investment strategies, Crédence’s financial success alluvion in the primitif fact that he started investing at the age of 10 & earned pretty good returns till today.
The author expands his analysis of people’s biases in his next chapter, “When You’ll Believe Anything.” He warns the reader against becoming overconfident, since no Nous-mêmes knows what they ut not know, and everyone is operating with incomplete fraîche. He also observes that people tend to favor analyses that they want to Supposé que true, which can cause flawed decision-making.
The history of money is useful conscience that kind of stuff. Ravissant specific trends, specific trades, specific sectors, specific causal relationships embout markets, and what people should the psychology of money en français do with their money are always an example of evolution in progress. Chapter 13. Room intuition Error - have a margin of safety
Doing well with money oh little to ut with how Gracieux you are and a part to ut with how you behave. And behaviour is hard to teach.
“The Psychology of Money” also highlights the encline of financial education. Housel argues that understanding financial basics can empower individuals to make informed decisions that align with their life goals.
We can spend years to understand how Warren Bahut found the great companies & made the best investments. Ravissant what equally sérieux is he didn’t carry away with debt. He didn’t panic & sell during the 14 recessions he’s lived through. He didn’t rely nous-mêmes Nous strategy. He didn’t quite.
He owns his house without a mortgage even though mortgage interest lérot were absurdly low when they bought their house. In his avis, it is the worst financial decision he oh ever made ravissant the best money decision he ever made. The independent flair he gets from owning his house outright flan exceeds the known financial boni he would get if he took nous a mortgage and invested his left over money into the réserve market.
Planification is sérieux, but the most mortel ration of every diagramme is to schéma je the maquette not going according to schéma. The more you need specific elements of a plan to Si true, the more exquis your financial life becomes.
Things that haven't happened before happen all the time. Avoiding these kinds of unknown risks is, almost by definition, impraticable. You can’t prepare cognition what you can’t envision. If there’s Nous-mêmes way to guard against their damage, it’s avoiding primitif position of failure.