The Psychology of Money

Annotations

• A genius is the man who can do the average thing when everyone else around him is losing his mind.

• The world is full of obvious things which nobody by any chance ever observes.

• Your personal experiences with money make up maybe 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works.

• Nothing is as good or as bad as it seems.

• Be careful who you praise and admire. Be careful who you look down upon and wish to avoid becoming.

• focus less on specific individuals and case studies and more on broad patterns.

• Success is a lousy teacher. It seduces smart people into thinking they can’t lose

• There is no reason to risk what you have and need for what you don’t have and don’t need.

• Things that have never happened before happen all the time.

• the outlier events that move the needle the most.

• most common plot of economic history is the role of surprises

• Fooled By Randomness

• use past surprises as an admission that we have no idea what might happen next.

• History can be a misleading guide to the future of the economy and stock market because it doesn’t account for structural changes that are relevant to today’s world.

Number of annotations:: 14