A simple and effective book about the psychology behind how humans invest and make financial decisions.
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• Some lessons have to be experienced before they can be understood.
• King Alyattes of Lydia, now part of Turkey, is thought to have created the first official currency in 600 BC.
• Realize that not all success is due to hard work, and not all poverty is due to laziness. Keep this in mind when judging people, including yourself.
• “Success is a lousy teacher. It’s seduces smart people into thinking they can’t lose.” -Bill Gates
• $81.5 billion of Warren Buffett’s $84.5 billion net worth came after his 65th birthday.
• Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.
• In 2018, Amazon drove 6% of the S&P 500’s return.
• “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” -George Soros
•John D. Rockefeller often recited this poem when asked about his silence during meetings: A wise old owl lived in an oak, the more he saw the less he spoke, the less he spoke, the more he heard, why aren’t we all like this wise old bird.
• “Risk is what’s left over when you think you’ve thought of everything.” -Carl Richards
• “True success is exiting some rat race to modulate one’s activities for peace of mind.” -Nassim Taleb
• Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time.
• Use money to gain control over your time, because 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, for as long as you want to, pays the highest dividend that exists in finance.
• Compounding works best when you can give a plan years or decades to grow. This is true for not only savings but careers and relationships. Endurance is key. And when you consider our tendency to change who we are over time, balance at every point in your life becomes a strategy to avoid future regret and encourage endurance.