March 1, 2023
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Morgan Housel
Morgan Housel, the author, is a well-known writer for a reason. He is clear, logical, and easy to read. This book offers up, in the form of many short stories, how behavior and not intellectual capacity is often a better predictor of financial success or failure. He makes the case that finance is too much like physics and not enough like psychology. Warren Buffett’s quote comes to mind, “If you have a 150 IQ, sell 30 points to someone else.” As it relates to an investment process, he emphasizes the importance of commitment and margin of safety. An enjoyable book.