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johanmirfin's review against another edition
informative
fast-paced
1.5
It was a series of poorly written articles that should have made up no more than 110 pages, dragged out over 230.
shivskewed's review against another edition
5.0
A must read book to learn about money, investing and staying wealthy. Extremely useful fundamental money lessons explained without any technical terms using engaging real life stories (the author talked about why stories are more powerful than statistics) and incidences. Although the book is a list of lessons and advices, it's so well written that you never get bored of it. In fact, you look forward to new lessons and newer examples that second those lessons. Another interesting thing about this book is all those money lessons have some really important life lessons among them, which I found totally relatable and really necessary to think about and act accordingly. For example the author writes - ”Happiness is a complicated subject because everyone’s different. But if there’s a common denominator in happiness—a universal fuel of joy—it’s that people want to control their lives." Or about failure he writes - ”Failure can be a lousy teacher, because it seduces smart people into thinking their decisions were terrible when sometimes they just reflect the unforgiving realities of risk. " The book is full of such easily ignored but extremely true statements about simple things in life. I would recommend that everyone new in finance should read this book atleast once and would love to read it again and again to remind myself of all those valuable lessons on life and money. The author ends the book by writing about his own finances before which he very aptly points out - "The difference between what someone suggests you do and what they do for themselves isn’t always a bad thing. It just underscores that when dealing with complicated and emotional issues that affect you and your family, there is no one right answer. There is no universal truth. There’s only what works for you and your family, checking the boxes you want checked in a way that leaves you comfortable and sleeping well at night."
thelittlebookiex's review against another edition
challenging
informative
reflective
slow-paced
3.25
electrophon's review against another edition
5.0
A helpful book
Today, I read Psychology of Money. There are lessons that I've learned in the book.
- The media likes to promote pessimism rather than optimism since it attracts more attention. Examples include stock prices going down when in the long term it will continue to increase.
- The economy will keep improving overtime, but there may be some temporary downfalls such as recession and inflation. The book discusses what happened post-WW2 and how lives have dramatically improved since then. Although the book does seem to implicitly suggest that the gap between the rich and poor is starting to increase.
- "85% of active mutual funds underperformed their benchmark over the 10 years ending 2018." The book suggest that investing in index fund is less risky than investing in mutual funds.
- There have been stories where investors have committed suicide due to losing all their wealth. While investing, you should be prepared to factor in risk.
- The most important factor in investing is time
There are more lessons in the book but I decided to bullet-point the most useful lessons.
More quotes from the book below:
"Half of all U.S. mutual fund portfolio managers do not invest a cent of their own money in their funds, according to Morningstar. This might seem atrocious, and surely the statistic uncovers some hypocrisy."
"Tell someone that everything will be great and they’re likely to either shrug you off or offer a skeptical eye. Tell someone they’re in danger and you have their undivided attention."
“Only 27% of college grads have a job related to their major, according to the Federal Reserve. Twenty-nine percent of stay-at-home parents have a college degree. Few likely regret their education, of course. But we should acknowledge that a new parent in their 30s may think about life goals in a way their 18-year-old self making career goals would never imagine."
Today, I read Psychology of Money. There are lessons that I've learned in the book.
- The media likes to promote pessimism rather than optimism since it attracts more attention. Examples include stock prices going down when in the long term it will continue to increase.
- The economy will keep improving overtime, but there may be some temporary downfalls such as recession and inflation. The book discusses what happened post-WW2 and how lives have dramatically improved since then. Although the book does seem to implicitly suggest that the gap between the rich and poor is starting to increase.
- "85% of active mutual funds underperformed their benchmark over the 10 years ending 2018." The book suggest that investing in index fund is less risky than investing in mutual funds.
- There have been stories where investors have committed suicide due to losing all their wealth. While investing, you should be prepared to factor in risk.
- The most important factor in investing is time
There are more lessons in the book but I decided to bullet-point the most useful lessons.
More quotes from the book below:
"Half of all U.S. mutual fund portfolio managers do not invest a cent of their own money in their funds, according to Morningstar. This might seem atrocious, and surely the statistic uncovers some hypocrisy."
"Tell someone that everything will be great and they’re likely to either shrug you off or offer a skeptical eye. Tell someone they’re in danger and you have their undivided attention."
“Only 27% of college grads have a job related to their major, according to the Federal Reserve. Twenty-nine percent of stay-at-home parents have a college degree. Few likely regret their education, of course. But we should acknowledge that a new parent in their 30s may think about life goals in a way their 18-year-old self making career goals would never imagine."
deepkiwireader's review against another edition
adventurous
hopeful
informative
inspiring
lighthearted
reflective
relaxing
medium-paced
5.0