Today’s episode, which originally aired in April 2018, offers advice to investors who want to sharpen and hone their competitive edge.
Here are three lessons from this conversation:
Lesson #1: Great investors need patience and humility.
Patience: “Patience can’t be arbitraged away,” says episode guest Morgan Housel. Great investors think long-term, and this requires a massive dose of patience.
Humility: Anybody can make a guess about the future. But few can consistently guess correctly, and admitting that requires humility.
Lesson #2: Read broadly.
Don’t just read books about finance and investing. Read from a broad multi-disciplinary array of subjects, so that you can form a latticework of ideas.
Episode guest Morgan Housel, for example, is an investment writer who, at the time of the interview, was currently reading a book about cancer.
Pulling ideas from multiple domains can make you a more original thinker, adding to your clarity and insight.
Lesson #3: Play a strong defense.
On the surface, it seems like playing defense is a conservative strategy. Emergency funds and a strong income-producing allocation, for example, both sound conservative.
But in the long-term it could prove to be the opposite.
Securing a strong defense allows you to attempt a strong offense. Once you know that the foundation is in place, you’re free to take bolder risks.
Enjoy this episode from the archives with investment writer Morgan Housel, as part of our September Sabbatical series.
- @morganhousel | Morgan’s Twitter
- Morgan Housel on Reading, Writing, Filtering Information | Podcast Episode
- Fortune’s Children | Book
- The Emperor of All Maladies | Book
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