Notes from the book

Introduction

1. A genius who loses control of their emotions can be a financial disaster.
2. Financial success is not a hard science. It’s a soft skill.
3. Physics isn’t controversial; it’s guided by laws. Finance is different; it’s guided by human behaviours.
4. To grasp why people bury themselves in debt you don’t need to study interest rates; you need to study the history of greed, insecurity and optimism.

1. No One’s Crazy

<aside> 💡 Your personal experiences with money make up maybe 0.0000001% of what’s happened in the world, but maybe 80% of how you think the world works.

</aside>

1. Everyone has their own unique experience with how the world works.
2. “Some lessons have to be experienced before they can be understood” - Michael Batnick
3. “Our findings suggest that individual investors' willingness to bear risk depends on personal history.” - The Economist
4. “To rephrase an old saying: everyone talks about retirement, but apparently very few do anything about it” - NYT
5. No one is crazy - we all make decisions based on our own unique experiences that seems to make sense to us in a given moment.

2. Luck & Risk

<aside> 💡 Nothing is as good or as bad as it seems.

</aside>

1. Luck and Risk are siblings. They are both the reality that every outcome in life is guided by forces other than individual effort.
2. The line between “inspiringly bold” and “foolishly reckless” can be a millimetre thick and only visible with hindsight.
3. Risk and Luck are doppelgängers.
4. Be careful who you praise and admire. Careful who you look down upon and wish to avoid becoming.
5. Focus less on specific individuals and case studies and more on broad patterns.