The Psychology of Money

The Psychology of Money

Morning folks,

“The man who doesn’t read has no advantage over the man who can’t.”

This job is 90% reading. If you want to be a better investor, read a lot of books. Read about history, psychology, finance, business, science, culture...really anything that broadens your world view. Read biographies — it’s a chance to learn from the smartest people who ever lived.

I’ve often found the books that teach you the most are not actually about investing at all. Most message boards would suggest Ben Graham’s ‘The Intelligent Investor’ as required reading. I think you’ll learn a lot more by reading ‘Nudge’ by Thaler and Sunstein, or ‘The Making of An American Capitalist’ by Lowenstein, or ‘Influence’ by Cialdini 

One man who you should absolutely be reading on a regular basis is Morgan Housel. Morgan posts a regular blog at The Collaborative Fund and is, in my opinion, the smartest guy writing about finance today. He’s also got a book coming out in about two weeks which can pre-order here.

(This isn’t a sponsored promotion by the way. I’m not even getting a free book out of this. But that’s fine because I’m confident it will be worth every penny.)

If you’re unfamiliar with Morgan’s work I’d highly recommend the blog which inspired the book as a good starting point and a worthy way to spend an hour over the weekend.