The Psychology of Money : Mind Boggling book on investment
It's a MUST READ for everyone including those not interested in investments.
It deserves 5 star!
Reasons why everyone should pick this book -
1. NO JARGON. NO CONCEPTS
Author tries to reinforce that there is nothing called concepts or jargon in real life. You don't buy a dress to boost the economy. You buy it cos you feel like. It doesn't follow any linear thought process or can't be predicted. It's just happens.
People through ages have attempted to predict uncertain events. But have been failing and will continue to. When you can't predict what you would do the next week, how can someone else predict people's thought process.
Reality is NO THING follows pattern, logic and rationale.
The moment we embrace this fact, everything in life becomes normal. At least it did for me.
2. SENSIBLE NARRATION AND KEEPS IT VERY SIMPLE
Margon Housel doesn't tries to convince an idea backed up by research papers. He simply explains the world as it is.
In fact he tries to invalidate the hype created for big investors.
For eg. There is a line in the book -
" None of the 2000 books written on Buffet's success are titled This Guy Has Been Investing Consistently for three Quarters of a Century.
Buffet's skill is investing, but his secret is time. "
My favorite lines are -
" Nothing is as good or as bad as it seems."
" The highest form of wealth is the ability to wake up every morning and say, "I can do whatever I want today" To do what you want, when you want, with who you want, for as long as you want, is PRICELESS. "
3. AUTHOR DOESN'T PREACH
The book doesn't preach anything. The idea is to follow what makes sense to you and keeps you happy.
It need not be rational or sane. What seems crazy to you seems normal to others.
All actions are contextual. So don't try to reason out. We can't. That's why no investor could 100% match their stock prediction till date. Only a percentage becomes true. This makes us realize the beauty of the real world.
It brings in equality across. No Rich or no poor can predict the future. It's equally uncertain to both of us. Its how we prepare ourselves to unprecedented event that differentiates a Wealthy person from a rich person. There is a significant difference.
It's a wholesome read where everyone can takeaway something for life from the book.
And I would like to thank my friend for suggesting me this book.