The Psychology of Money — Morgan Housel
Morgan Housel's premise
is that financial outcomes have less to do with intelligence or technical skill
than with behavior — patience, humility about luck, and the ability to leave
money alone. The book is organized as a series of short, largely independent
essays, each built around a single idea illustrated with a historical anecdote.
The essay format suits
the argument well. Housel isn't building toward a unified theory so much as
demonstrating the same underlying point — that psychology, not spreadsheets,
determines most financial outcomes — from a dozen different angles: the role of
luck versus skill, the tendency to compare wealth against the wrong benchmark,
the value of a margin of safety.
The book is light on
prescriptive advice by design, which will frustrate readers looking for a
concrete plan, but that restraint is also its strength; Housel is more
interested in changing how you think about money than telling you what to do
with it. Among recent finance books aimed at a general audience, it's unusually
well written and rarely repeats itself.
Get The Psychology of Money from Amazon
Post a Comment