The Psychology of Money
256 Seiten

I don't know how to categorize this books. It's not exactly a personal finance book, but kind of. It's not exactly a book about the foundations of behavioural finance, but kind of. I think the best way to describe it is that it's a collection of essay-form chapters loosely following a few central concepts:

  • It's better to be reasonable in investing than it is to be perfectly rational
  • Aim for a large margin of safety -- in investing but also in any life decisions
  • Saving is worthwhile without having to save "for something"
  • Accept that randomness is part of reality
  • View "risk" as the normal fee to pay for achieving high returns and don't even attempt to escape it (= don't try to time the market)

I think Morgan Housel did a great job with this book. He didn't craft a whole new framework like many business book attempt to do. He didn't try to, and I think this was exactly right. This is a book that connects the dots, so to speak. It was short, to the point, and a breeze to read.

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