The Psychology of Money — Morgan Housel
Paperback | Harriman House | September 8, 2020
The Gist
An ex-WSJ journalist takes a closer look at the real wild cards in the stock market: humans and their feelings.
Read if you like:
I Will Teach You to Be Rich by Ramit Sethi
Elements of Investing by Burton Malkiel & Charles Ellis
Start with Why by Simon Sinek
Finance
Investing
Verdict: Read It
The Psychology of Money pushes back against the typical narrative that investment is all about the numbers and instead argues the key to investing successfully comes down to human behavior. Housel shows off his journalism chops by keeping each chapter conversational, brief, and focused. He backs up his arguments with plenty of examples and statistics and the book moves quickly and, overall, is enjoyable. The book encourages readers to assess their relationship with money and how they would define wealth before they start investing. It’s a topic that’s often glazed over or overlooked entirely by most investing books, which is ironic because behavior is one of the few things investors can control. Housel’s chapters aren’t prescriptive, but by unpacking human behavior, he offers readers a chance to assess their tendencies and reflect on how they might respond if they were in a similar situation. In doing so he opens the door to a larger (and much-needed) conversation about what being wealthy really means and looks like.
