Starting the book i received from @GHFieldDayIndia
There are 20 short stories in this book explaining life's important matters including money.
So planning to grow this thread daily, by posting what I learnt that day 😌
Stay tuned and share/retweet if you find it helpful! 🥂
There are 20 short stories in this book explaining life's important matters including money.
So planning to grow this thread daily, by posting what I learnt that day 😌
Stay tuned and share/retweet if you find it helpful! 🥂
1. No one is crazy- we all make decisions based on our unique experiences that seem to make sense to us in a given moment.
Any investor's willingness to take risk depends on personal history.
Modern financial system is hardly 50 years old, we're newbies and therefore clueless 🥲
Any investor's willingness to take risk depends on personal history.
Modern financial system is hardly 50 years old, we're newbies and therefore clueless 🥲
2. Luck & risk- are doppelgangers.
There's a very thin line between "inspiringly bold" and "foolishly reckless".
Everything worth pursuing has less than 100% chances of succeeding.
So arrange your finances such that a mistake or a bad investment won't wipe you out.
There's a very thin line between "inspiringly bold" and "foolishly reckless".
Everything worth pursuing has less than 100% chances of succeeding.
So arrange your finances such that a mistake or a bad investment won't wipe you out.
3. Never enough- The hardest financial skill is getting the "goalpost" to stop moving. ⛳
The sky is the limit to social comparisons, thus it's a battle that can never be won, or that the only way to win is to accept that you have enough, even if it is less than those around you.
The sky is the limit to social comparisons, thus it's a battle that can never be won, or that the only way to win is to accept that you have enough, even if it is less than those around you.
4. Confounding compounding- the counterintuitive nature of compounding leads even the smartest of us to overlook it's power.
#WarrenBuffet is the richest investor ($102.1 billion) because he invested for ~75 yrs 😳
You don't need tremendous force to create tremendous results 🤗
#WarrenBuffet is the richest investor ($102.1 billion) because he invested for ~75 yrs 😳
You don't need tremendous force to create tremendous results 🤗
5. Getting wealthy vs. staying wealthy- some combination of frugality and paranoia is very important.
The ability to stick around for a long time, without wiping out or being forced to give up, is what makes the biggest difference. 💸
Survival mentality is the key. 🗝️
The ability to stick around for a long time, without wiping out or being forced to give up, is what makes the biggest difference. 💸
Survival mentality is the key. 🗝️
6. Tails, you win- a good definition of an investing genius is the person who can do the average thing when all those around them are going crazy.
Major successes or gains often come from a small percentage of actions
You can be wrong half the time, and still, make a fortune 🤗
Major successes or gains often come from a small percentage of actions
You can be wrong half the time, and still, make a fortune 🤗
7. Freedom- the ability to do what you want, when you want, with who you want, for as long as you want, is ✨priceless✨ It is the highest dividend money pays. Everyone wants to feel in control of their life, which money gives us: hence the "Money can/can't buy happiness" debate.
8. Man in the car paradox- You might
think you want an expensive car, a fancy watch, and a huge house.
Honestly, you don't.
What you want is respect and admiration from other people, and you think having expensive stuff will bring it, which it almost never does 🤐🥴
think you want an expensive car, a fancy watch, and a huge house.
Honestly, you don't.
What you want is respect and admiration from other people, and you think having expensive stuff will bring it, which it almost never does 🤐🥴
9. Wealth is what you don't see- It's difficult to learn from what you can't see, which explain why it's so hard for many to build wealth.
World is filled with people who look modest but are actually wealthy and people who look rich who live at the razor's edge of insolvency. 👀
World is filled with people who look modest but are actually wealthy and people who look rich who live at the razor's edge of insolvency. 👀
10. Save money- one of the most powerful ways to increase your savings ISN'T to raise your income. It's to raise your humility and savings.
Wealth is just the leftovers after you spend your income. And you can build wealth without a high income, but not without a high saving rate
Wealth is just the leftovers after you spend your income. And you can build wealth without a high income, but not without a high saving rate
11. Reasonable > rational- Do not aim to be coldly rational when making financial decisions.
The reasonable #investors who love their technically imperfect strategies have an edge, because they're more likely to stick with those strategies 💹
The reasonable #investors who love their technically imperfect strategies have an edge, because they're more likely to stick with those strategies 💹
Surprise- Things that have never happened before happen all the time.
History can be a misleading guide to the future of economy because it doesn't account for structural changes or surprises.
Investing is not just hard science or formulas, it's outlier events and their impact 😱
History can be a misleading guide to the future of economy because it doesn't account for structural changes or surprises.
Investing is not just hard science or formulas, it's outlier events and their impact 😱
13. Room for error- You have to take risks to get ahead, but no risk that can wipe you out is ever worth taking.
Predicting what you'll use your savings for assumes you live in a world where you know exactly what your future expenses will be, which no one does.
Have backups 🥸
Predicting what you'll use your savings for assumes you live in a world where you know exactly what your future expenses will be, which no one does.
Have backups 🥸
14. You'll change- Long term financial planning is hard because the world and people's goals and desires change over time
Regrets are specially painful when you abandon a previous plan and feel that you have to run in the other direction twice as fast to make up for lost time 🏃♀️
Regrets are specially painful when you abandon a previous plan and feel that you have to run in the other direction twice as fast to make up for lost time 🏃♀️
15. Nothing's free- Market returns are never free and never will be, they demand you pay a price.
Consider volatility as a fee, not a fine.
The only way to deal with volatility and uncertainty is to convince yourself that it's the market fee and is worth it ✍️
Consider volatility as a fee, not a fine.
The only way to deal with volatility and uncertainty is to convince yourself that it's the market fee and is worth it ✍️
16. You & Me- Investors often take cues from other investors who are playing a different game than they are.
It's hard to grasp that other investors have different goals than we do, because we do not realise that rational people can see the world through a different lens 🧐
It's hard to grasp that other investors have different goals than we do, because we do not realise that rational people can see the world through a different lens 🧐
17. The seduction of pessimism- tell someone that everything will be great, and they'll shrug it off or offer a skeptical eye. Tell them they're in danger and you have their undivided attention.
Short sting of pessimism prevails while the powerful pull of optimism goes unnoticed
Short sting of pessimism prevails while the powerful pull of optimism goes unnoticed
18. When you'll believe anything- the more you want something to be true, the more likely you are to believe a story that overestimates the odds of it being true.
That's why appealing stories and fiction is more powerful amd impactful than statistics. 📊
That's why appealing stories and fiction is more powerful amd impactful than statistics. 📊
19. All together now- No financial advisor can tell you what to do with your money because they don't know you.
But they know the odds and what might work. There are universal truths, and people come to different conclusions about how they want to apply those to their finances 💯
But they know the odds and what might work. There are universal truths, and people come to different conclusions about how they want to apply those to their finances 💯
20. Confessions- In the final chapter of the book, the author talks about his investment strategy and what works for him.
The most important thing for him is independence which led him to take steps that might not be considered conventionally smart or 'the right thing to do' ✔️
The most important thing for him is independence which led him to take steps that might not be considered conventionally smart or 'the right thing to do' ✔️
Finally completed this book 📖
I genuinely learnt a lot and enjoyed it 😁
Hope this thread helps you out, I am surely gonna go through this whenever I feel like I need some revision 🤪
I genuinely learnt a lot and enjoyed it 😁
Hope this thread helps you out, I am surely gonna go through this whenever I feel like I need some revision 🤪
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