Investing Psychology is something that I have started to become more interested in: especially during the current times of great uncertainty in the markets. I found some great takeaways in the book “The Psychology of Money,” Morgan Housel explores the many ways that our psychology influences our relationship with money.
Here are some of the key takeaways from the book:
Behavior with money is irrational. We make decisions based on emotions rather than logic.
We often overestimate our abilities to predict the future.
Trying to time the market takes away the ability to compound capital over time which is the greatest feature of long term investing.
Financial success is not just about making money. It’s also about avoiding mistakes.
This book really got me to re-evaluate how I think about the markets and it is a must read for anyone trying to understand the craft of investing.
