TRJ #9. Morgan Housel: The Psychology of Money & How to Become A Better Investor


My guest today is Morgan Housel, the author of The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness. Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal.

In his book, Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics. In this episode, you’ll learn what money can and can’t buy, the difference between being rich and being wealthy, how you 50% of your investments can go wrong but still make a fortune, what to do to become a better investor, and more wonderful advice.

 
TIMESTAMPS:

  • [00:54] How people view money differently & why you shouldn’t buy lotto tickets

  • [04:36] How money buys you freedom & some happiness

  • [08:07] Things money can’t buy you

  • [11:13] Looking rich versus being rich

  • [13:37] The importance of savings rate to becoming wealthy

  • [16:12] How 50% of your investment can fail & you can still make a fortune

  • [20:15] Warren Buffett & the power of the compound effect

  • [23:09] Why you need to increase your time horizon to become a better investor

  • [25:23] Volatility is the fee you pay the stock market for great returns

  • [27:21] Bernie Madoff & how to prevent yourself from getting greedy

  • [30:02] The role of luck & risk in investing

  • [34:08] When you should & shouldn’t take investment advice

  • [36:28] Investment advice for listeners

  • [40:11] Possible explanations for why the stock market keeps going up

  • [43:03] Morgan’s personal investment strategy

  • [45:07] Books that had a huge influence on Morgan & how they changed him


Learn more about the author:

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