This week I published my book notes on the book The Psychology of Money by Morgan Housel. Here are some of my favourite highlights from the book. You can check out the entire book notes using the link below.
More than 2,000 books are dedicated to how Warren Buffett built his fortune. Many of them are wonderful. But few pay enough attention to the simplest fact: Buffett’s fortune isn’t due to just being a good investor, but being a good investor since he was literally a child.
The highest form of wealth is the ability to wake up every morning and say, “I can do whatever I want today.”
Wealth is hidden. It’s income not spent. Wealth is an option not yet taken to buy something later. Its value lies in offering you options, flexibility, and growth to one day purchase more stuff than you could right now.
The problem for many of us is that it is easy to find rich role models. It’s harder to find wealthy ones because by definition their success is more hidden.
Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence, which can happen in an instant.
Define the game you’re playing, and make sure your actions are not being influenced by people playing a different game.
Good decisions aren’t always rational. At some point you have to choose between being happy or being “right.”