All the Hacks: Money, Points & Life

chevron_right

The Psychology of Money with Morgan Housel

whatshot 23 snips

Jun 9, 2021

Guest

Morgan Housel

Morgan Housel, a partner at Collaborative Fund and author of 'The Psychology of Money,' dives into how our emotions shape financial behavior. He discusses the importance of introspection in financial success and the value of understanding personal strengths and weaknesses. Housel highlights the balance between saving and earning, and warns against the pitfalls of extreme frugality in the pursuit of financial independence. He emphasizes the necessity of long-term investing, accepting the reality of being wrong, and focusing on personal contentment over societal validation.

53:15

forum

Ask episode

web_stories

AI Snips

view_agenda

Chapters

menu_book

Books

auto_awesome

Transcript

info_circle

Episode notes

insights

INSIGHT

Learning Risk Tolerance

True risk tolerance is only learned through experience, not hypothetical questionnaires.
People react differently in real market downturns than they predict.

insights

INSIGHT

Risk and Context

Market downturns don't happen in isolation; they're tied to real-world crises.
This makes risk tolerance questionnaires inaccurate.

insights

INSIGHT

Positive Art of Investing

Investing is a "positive art"; success comes from a few big wins.
It's okay to be wrong often, as long as you avoid catastrophic errors.

Get the Snipd Podcast app to discover more snips from this episode

The Challenges of Teaching Behavioral Finance

03:28 • 2min

chevron_right

Embracing True Wealth: Autonomy Over Accumulation

05:07 • 12min

chevron_right

The Pitfalls of Extreme Frugality and the FIRE Movement

16:50 • 4min

chevron_right

Psychology of Investing: Risks and Realities

20:59 • 13min

chevron_right

The Acceptance of Being Wrong in Investing

34:12 • 4min

chevron_right

The Art of Long-Term Investing

37:51 • 15min

chevron_right

Introspection and Personal Finance: Key to Success

53:08 • 3min

chevron_right

#385

• Mentioned in 75 episodes

Security Analysis

Benjamin Graham

David L. Dodd

First published in 1934, Security Analysis is a seminal work in the field of finance that lays the intellectual foundation for value investing. The book, written by Benjamin Graham and David L. Dodd, distinguishes between investing and speculating, emphasizes the importance of thorough financial analysis, and introduces key concepts such as the 'margin of safety. ' The sixth edition includes commentary from leading Wall Street money managers and a foreword by Warren E. Buffett, who has praised the book for its enduring relevance in modern markets.

#49

• Mentioned in 252 episodes

The intelligent investor

Jason Zweig

Benjamin Graham

Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.

#20

• Mentioned in 381 episodes

The Psychology of Money

Timeless Lessons on Wealth, Greed, and Happiness

Morgan Housel

In 'The Psychology of Money,' Morgan Housel delves into the psychological and emotional aspects of financial decisions. The book consists of 19 short stories that illustrate how personal history, worldview, emotions, and biases influence financial outcomes. Housel emphasizes the importance of behavior over knowledge in managing money, highlighting the power of compounding, the dangers of greed, and the pursuit of happiness beyond mere wealth accumulation. He advocates for a frugal lifestyle, long-term perspective, and a balanced approach to investing, stressing that financial success is more about mindset and discipline than about technical financial knowledge.

#16272

• Mentioned in 3 episodes

What We Knew

Terror, Mass Murder, and Everyday Life in Nazi Germany

Eric A. Johnson

Karl-Heinz Reuband

This book combines the expertise of a German sociologist and an American historian to offer a startling oral history of life in the Third Reich. It draws on oral histories and a unique survey of 4,000 people, including both German Jews and non-Jewish Germans, who lived under the Nazi regime. The research confirms that both Germans and Jews were aware of the mass murder of European Jews as it was occurring. It also refutes long-held assumptions, suggesting that Hitler and National Socialism were genuinely popular among ordinary Germans, and that intimidation and terror played a minor role in enforcing loyalty. The book is crucial for understanding life in the Third Reich and is a central work for scholars of the Holocaust, World War II, and totalitarianism.

#6: Renowned financial columnist, Morgan Housel talks with Chris about the psychology of money. They discuss the mindset of winning investors, new ways to think about risk, when to hold cash vs. invest, and how you can stop wanting more and focus on your own financial independence.

Morgan Housel (@morganhousel) is a partner at Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal. He is also the author of the bestselling book The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness.

Full show notes available at: https://www.allthehacks.com/psychology-of-money-morgan-housel/

Partner Deals

For all the deals, discounts and promo codes from our partners, go to: allthehacks.com/deals

Resources Mentioned

Connect with Morgan: Twitter | Website | LinkedIn

Morgan’s book: The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness

Benjamin Graham's Books: The Intelligent Investor | Security Analysis

Eric Johnson's Book on Nazi Germany: What We Knew

Full Show Notes

(01:22) What Drove Morgan to Write the Book?

(03:58) Contrasting Finance Education with Real-World Application

(05:44) Unveiling the Highest Form of Wealth

(07:18) Exploring Financial Independence as a Spectrum

(10:28) Building Wealth: Balancing Saving and Earning

(12:30) The Paradox: Why People Dislike Saving Money

(13:36) Curbing Desires: A Strategy for Specific Individuals

(17:20) Extremes of FIRE: Striking a Social Balance

(19:34) Unraveling the Mysteries of Irrational Money Behavior

(22:16) Active vs. Passive Investing: Can You Embrace Both?

(26:52) Understanding Your True Risk Tolerance

(32:34) Embracing Fallibility and Liberating Yourself from Perfection

(36:25) Staying the Course: Making Multiple Calculated Bets

(38:51) Framework for Learning from Financial Mistakes

(39:30) Multidimensional History: Acknowledging Different Perspectives

(41:26) Learning from History: The Best Approach

(44:41) Reimagining Education: Shifting Curriculum Focus

(46:54) Parental Role: Nurturing Financial Education in Kids

(49:04) Delving into the Overlooked Aspects of Behavioral Finance

(50:47) The Singular Financial Hack You Need

Connect with All the Hacks

All the Hacks: Newsletter | Website | Membership | Email

Chris Hutchins: Twitter | Instagram | Website | LinkedIn

Editor’s Note: The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

Learn more about your ad choices. Visit megaphone.fm/adchoices

Home Top podcasts Popular guests Top books