Happy September! If you’ve been listening to the show for the past few years, then you know that we’ve entered our September Sabbatical, where the team takes a break from podcast production and airs a few of our favorites from the 400+ episodes we’ve aired to date.
F.I.R.E. holds four pillars: Financial psychology, Investing, Real estate, and Entrepreneurship.
This September, we’re running four weeks of episodes focusing on each of these four pillars. Investing is the focus of today’s episode.
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Do you wrestle with the idea of leaving your savings in an account earning next to nothing versus investing it in the stock market?
Do you use investment strategies that allow you to work with your nature, rather than against it?
Are you careful to seek investment advice from those who share your investment goals, or do you get caught up in the trends of day traders?
Morgan Housel, author of The Psychology of Money, joins us to discuss why investing is not the study of finance, but the study of how people behave with money. Morgan is an award-winning financial journalist, former columnist for the Wall Street Journal and The Motley Fool, and one of the foremost thinkers in the world of investing.
As a long-term investor who shares our buy-and-hold philosophy, Morgan has behavioral finance insights that can help us invest for financial independence with more clarity and a better understanding of ourselves.
We discuss how to develop self-awareness around biases, the importance of flexibility for long-term strategies, saving like a pessimist and investing like an optimist, becoming durable in the face of market adversity, the key difference between patience and stubbornness (and how it affects your mindset), expectation management, the importance of bonds and emergency funds, and a difficult lesson about tail risks that Morgan learned at age 17.
You’ll enjoy this episode if…
- You’re super Type A with your investment portfolio and have a hard time letting go of plans that didn’t work out.
- You want to learn a framework that can help you roll with the inevitable punches of the stock market.
- You feel behind and have no idea how to develop a sense of what ‘enough’ is.
- You’re tired of trying to overcome your inherent biases and reactions to the market and want to try something different.
Resources Mentioned:
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- The Psychology of Money, by Morgan Housel
- The Collaborative Fund
- #125: How to Gain a Competitive Edge – Morgan’s previous interview on the show
- Bluehost – start a blog in 5 minutes
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