Behavioural principles
- Finance is driven by people behaviour
- Optimism for the future; paranoia about the short term
- Case studies and broad patterns over individuals
- Avoid social comparison
- Aim to be reasonable, not rational
Financial principles
- Being financially consistent is more important than huge returns
- Diversify your investments
- Save More Money
- Good investing is NOT about making good decisions
- Know how much is enough
- Good plans plan on the plan not working
- Grow your profits, cut your losses
- History cannot be used to predict the future
- The price of successful investing
- Optimism is a good investing strategy
Financial lessons for life
- Being rich is different from feeling rich
- Wealth is generally hidden
- Keep the goalpost constant
- The happiness equation
- The most dangerous risks - Surprises of life
- Appreciate the role of luck
- Small number of events account for majority of outcomes - Tail events
- Wealth gives you freedom
- Wealth does not get you admiration and respect
- Dealing with end of history illusion
- Avoid sunk costs
- Do not get influenced by the actions of others
- Beware of the story that we tell ourselves
Others
- Be more forgiving - topic of finance is new
- Factors that influence our decisions with money
- Why do smart people disagree in their analyses, predictions
- How do people generally make financial decisions
- How to know how much is enough
- Why should we save money
- Why people do not feel much happier even though we have more money
- Why do investors sell at the bottom of a bear market
- Everyone is playing a different game
- Market bubbles
- We do not understand how the world works
- Mental accounting
Research
- Depression Babies - Do Macro-economic Experiences Affect Risk-Taking
- The Growing Importance of Family and Community - An Analysis of Changes in the Sibling Correlation in Earnings
- Majority of wealth earned by Benjamin Graham is owed to his lucky investment in one stock
- 30 Lessons for Living - Karl Pillemer
- The Sense of Wellbeing in America, 1981 - Angus Campbell
Case studies
- Ronald Read - Janitor who died a millionaire
- Rajat Gupta - Who never had ENOUGH
- Richard Fuscone - brilliant, but greedy
- Jesse Livermore - Who earned when the Great Depression happened and then declined
- Harry Markowitz - Nobel Prize winner in Mathematics who was reasonable
- Investing strategy of Morgan Housel