Thinking long term
Discussion
Interesting article on psychology of investment in WSJ:
https://www.wsj.com/articles/do-you-know-the-diffe...
“The critical distinction between being rich (having a high current income) and being wealthy (having the freedom to choose not to spend money).”
https://www.wsj.com/articles/do-you-know-the-diffe...
“The critical distinction between being rich (having a high current income) and being wealthy (having the freedom to choose not to spend money).”
Apologies. A book review of “The Psychology of Money” by Morgan Housel.
Two main points: 1) Time invested over all else:
“Had Mr. Buffett earned his world-beating returns for only 30 years rather than much longer, he would be worth 99.9% less, notes Mr. Housel. “The real key to his success is that he’s been a phenomenal investor for three quarters of a century,” he writes of Mr. Buffett. “His skill is investing, but his secret is time.”
So Mr. Buffett—traditionally viewed as the greatest living example of investing skill—is also proof of the power of luck and longevity.”
Generation effects:
“In a similar vein, “The Psychology of Money” argues the biggest determinant of long-term returns often happens to be when you were born. Adjusted for inflation, people born in 1950 earned essentially nothing in the stock market between the ages of 13 and 30, Mr. Housel shows. Those born in 1970 earned roughly nine times as much on stocks in their formative years. Those born in 2000? They may have to save a lot more than their parents did.”
Two main points: 1) Time invested over all else:
“Had Mr. Buffett earned his world-beating returns for only 30 years rather than much longer, he would be worth 99.9% less, notes Mr. Housel. “The real key to his success is that he’s been a phenomenal investor for three quarters of a century,” he writes of Mr. Buffett. “His skill is investing, but his secret is time.”
So Mr. Buffett—traditionally viewed as the greatest living example of investing skill—is also proof of the power of luck and longevity.”
Generation effects:
“In a similar vein, “The Psychology of Money” argues the biggest determinant of long-term returns often happens to be when you were born. Adjusted for inflation, people born in 1950 earned essentially nothing in the stock market between the ages of 13 and 30, Mr. Housel shows. Those born in 1970 earned roughly nine times as much on stocks in their formative years. Those born in 2000? They may have to save a lot more than their parents did.”
Unexpected Item In The Bagging Area said:
If you copy and paste the title and Google it you should be able to access the full article
Yeah normally but every way even via Google News came up with the paywall.I think the takeaway is compounding is a miracle.
And having F U money is good
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hstewie said:
hstewie said: Yeah normally but every way even via Google News came up with the paywall.
I think the takeaway is compounding is a miracle.
And having F U money is good
Ok, try highlighting the title and then clicking on Look Up and Search Web. It’s worked for me once each on different Apple devices. I think the takeaway is compounding is a miracle.
And having F U money is good
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