Ever made a flippant, seemingly minor decision that radically changed the course of your life?
Morgan Housel has experienced this. At age 17, he made a quick decision that ended up saving his life. Sadly, two of his friends were less fortunate.
He shares that story in today’s podcast episode, and sheds light on the lessons he’s learned from it.
Housel says that his lifesaving choice — and many of our other important decisions — are snap verdicts, ones that we don’t spend much time thinking about.
If pivotal moments are decided in a flash, how do we navigate risk? How do we evaluate our options?
Housel says this comes understanding concepts that remain constant, consistent, and universal.
We need to accept that humans aren’t rational. We must appreciate the reasons why the best answer doesn’t always win. We ought to remember that we overlook many good things happening around us. These constants will most likely impact our futures.
Housel was named by MarketWatch as one of the 50 most influential people in the market. He is the New York Times bestselling author of The Psychology of Money. His new book is titled Same As Ever.
He joins us to discuss the ideas in his latest book.
Discussion Points as of February 2024:
01:47: The decision that saved Morgan Housel’s life
06:37: How to make decisions
07:56: What is risk?
09:53: The best answer doesn’t win, the best story does
12:02: Humans are irrational
25:46: Was the economy better in the 1950’s?
29:21: How to moderate our expectations and not give in to the comparison trap
31:00: Why we don’t notice the good things
34:41: How to manage risk of ruin
41:34: How to distinguish between misfortune and recklessness
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