This month, we’re running four episodes based around the four pillars of F.I.R.E. — financial psychology, investing, real estate and entrepreneurship.
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.
Resources Mentioned:
- @morganhousel | Morgan’s Twitter
- Morgan Housel on Reading, Writing, Filtering Information | Podcast Episode
- Fortune’s Children | Book
- The Emperor of All Maladies | Book
Thanks to our sponsors!
Oregon State University Ecampus
Does your dream career require a degree? Oregon State University (OSUE) is a leader in online education and is known for providing the best online experiences for students across the globe. With more than 85 programs online, OSUE prepares learners to make an impact. Learn more at ecampus.oregonstate.edu/paula.
OUAI
Created by celebrity hairstylist Jen Atkin, OUAI’s hair care, body, and fragrance products are cruelty-, sulfate-, and paraben-free. Use their Detox Shampoo to reset your hair and scalp once-a-week. It smooths frizz and creates shine for all hair types. Go to theouai.com and use code “affordanything” to get 15% off your entire purchase. They have refillable pouches, too.
Policygenius
In minutes you can work out how much life insurance coverage you need, and compare personalized quotes to find your best price. Go to policygenius.com for free quotes and comparisons across more than 30 insurers. It only takes a few minutes to get started, and Policygenius never sells your information to other companies.
Rothy’s
Rothy’s shoes are stylish, sustainable, and comfortable for everyday wear, anywhere. They come in numerous styles, their lineup is updated often, and their flats, shoes, and bags are made from recycled plastic water bottles! Go to rothys.com/paula to find footwear for the whole family.
