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Psychology of Money

Good investing isn’t about earning the highest returns, because the highest returns tend to be one-off, involves lot of luck factor, and thus non-repeatable. Good investing is about earning good enough returns consistently over a long period of time. This is how warren buffet got rich. He earned 81 billion of his 85 billion wealth after the age of 65. It’s about survival. Just keeping it going. Compounding doessn’t rely on big returns

When we accept that tail drives everything in business, investing etc., we realize that it’s normal for many things to go wrong, fail.

What matters is how much money you make when you’re right and how much you lose when you’re wrong

People tend to want wealth to signal to others that they should be liked and admired. But in reality those other people often bypass admiring you, not because they don’t think wealth is admirable, but because they use your wealth as a benchmark for their own desire to be liked and admired.People are obsessed with themselves.

Things that have never happened before happen all the time

If you want to do better as an investor, the single most powerful thing you can do is increase your time horizon. Time is the most powerful force in investing.

Also remember that your health, family, friends respect is equally if not more valuable than money.