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Debt is best understood as narrowing the range of outcomes you can survive, not as a cost of capital.

Drawn from what Morgan Housel said

Margin of safety

investingunder our view: Money is a tool for a life, and most people quietly treat it as a scoreboard instead Which mental models help you think better?under our view: Leave a margin of safety, because you will be wrong sometimes

What Morgan Housel actually said

  1. Morgan Housel Partner at Collaborative Fund and author of The Psychology of Money
    I think this is the most practical way to think about debt: As debt increases, you narrow the range of outcomes you can endure in life.

    ↗How I Think About Debtcollabfund.com

    30 Apr 2024

    All 2 korrents from this piecethis one is 1st

Added to korrents 7 Sept 2026 · How quotes work · Something wrong? Tell us

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