Morgan Housel: What You Need to Master (And Avoid) to Get Rich, Stay Rich, and Build Wealth

1. 0:04:28 · watch on youtube.com↗

   Our reading

   If something can be done to change the odds of an outcome, it is not luck by definition; luck is what is truly outside one's control, such as where and when one is born.

   Their wordsif you can can do something that changes your odds of an outcome it's not luck by definition luck to me the biggest are where and when you were born you can't control it

2. 2 min later

3. 0:06:37 · watch on youtube.com↗

   Our reading

   When luck is separated from skill, the part to pay most attention to is what is repeatable: what someone could do again.

   Their wordsyou want to find what is repeatable and what you could do again and those are the things you should just pay the most attention to

4. 3 min later

5. 0:09:18 · watch on youtube.com↗

   Our reading

   Susceptibility to FOMO, especially in markets inflamed by social media, leaves little hope of building wealth over time.

   Their wordsparticularly in modern markets that can get so crazy with social media and Reddit and Twitter and everything if you if you are susceptible to fomo there's no hope for you over time

6. 2 min later

7. 0:11:21 · watch on youtube.com↗

   Our reading

   An investor with a 20-, 30- or 50-year game should not take cues from people playing a different game, such as trading for the next quarter, and that is where much of investing's danger comes from.

   Their wordsmy game is is different I think your game is different most people's game might be a little bit different and what's important is that if your game is to invest for the next 20 30 50 years that you're not taking your cues from people who are playing a different game of trading for the next quarter and that's where a lot of danger and investing comes from

8. 3 min later

9. 0:14:05 · watch on youtube.com↗

   Our reading

   Because stock returns are concentrated in a few winners that are very hard to know in advance, owning the whole index guarantees owning whichever ones turn out to be the drivers.

   Their wordsit's always the case that it's very taal driven the distribution of returns and owning the index just guarantees that whatever is going to be the next driver I own because it's extremely difficult to know what those are going to be

10. 1 min later

11. 0:14:59 · watch on youtube.com↗

    Our reading

    In investing, extra effort tends to correlate negatively with results for the vast majority of people, with some exceptions such as Renaissance Technologies.

    Their wordsinvesting is one of the very few Endeavors in life where the harder you try the worse you're probably going to do and yes there are exceptions to that Renaissance Technologies of course you you you can name the exceptions for people who tried very hard and did very well but for the vast majority of people there's going to be a negative correlation between the effort you put into it and the results that you got out of it

12. 3 min later

13. 0:18:02 · watch on youtube.com↗

    Our reading

    Trouble comes from the gap between net worth and expectations: it is when expectations grow faster than net worth.

    Their wordsif your net worth grows 10% but your expectations grow 12% that's that's when you get into trouble it's just the gap between the two

14. 13 min later

15. 0:31:24 · watch on youtube.com↗

    Our reading

    Most financial debates are not real disagreements but people with different personalities talking over each other, and there may be no single right answer.

    Their wordsI think most Financial debates whether it's like an investing debate or a saving or spending debate people are not actually disagreeing with each other they're not actually debating it's people with different personalities talking over each other and once you come to terms with that there's not one right answer for any of this

16. 15 min later

17. 0:46:30 · watch on youtube.com↗

    Our reading

    Risk is best defined as whatever could keep a person from their own goals, so stock-market volatility is a risk for a day trader and not for someone retiring in fifty years.

    Their wordsI think broadly it's anything that's going to prevent you from achieving the goals that you want that's a a very basic answer but I think that's what it is and the reason that's important is because take volatility in the stock market is that risk well it could be if you're a day trader then yes if the market goes down tomorrow that's a risk for you if you're in if you're going to retire in 50 years it's not whatsoever

18. 2 min later

19. 0:48:15 · watch on youtube.com↗

    Our reading

    Bold risk-taking and conservative paranoia can work together, as when Gates pursued an audacious vision while wanting a year of payroll in cash, combining getting rich with staying rich.

    Their wordsthe example that I always use is Bill Gates when he started Microsoft took the most audacious entrepreneurial swing that maybe anyone's ever taken of saying every desk in the world needs a computer on this and he's saying this in 1974 whatever it was crazy amount of risk crazy bold Vision at the same time he said that he always wanted Microsoft to have enough cash in the bank to make payroll for one year with no Revenue which is the most conservative pessimistic way to run a business so he's like very risk-taking and very conservative paranoid at the same time very good at getting rich very good at staying Rich at the same time

20. 24 min later

21. 1:12:03 · watch on youtube.com↗

    Our reading

    Being average for an above-average period of time can lead to a well above-average result, because endurance rather than this year's return is the variable that matters.

    Their wordsif I can be average for an above average period of time that leads to a way above average result it's not it's it's not about like what are the returns that I can earn this year if I can earn 8% returns for 50 years the results are ridiculous the results are absurd and so maximizing the variable that matters which is time and endurance

22. 17 min later

23. 1:28:41 · watch on youtube.com↗

    Our reading

    More about money may be learned from fields like politics, military history, biology and sociology than from a finance book, because the question is how people make decisions.

    Their wordsI think you can learn more about money by reading about politics military history biology sociology than you will by reading a finance book because you're just trying to figure out how do people make decisions how do you make decisions and how do other people make decisions and by and large you're not going to learn that in an economics textbook but you will learn about it by reading all of these other fields that have nothing to do with money