📘Highly recommend Morgan Housel's "The Psychology of Money"——
The first impression of reading this book is:
I feel that many parts resonate highly with my own investment logic, and I regret not having seen it earlier. If I had seen it sooner, I might have avoided ten years of detours.
Because I have really encountered many of the mindsets and pitfalls discussed in the book; it just cost me more to eventually return to the right path!
1️⃣ Why do I recommend it?
I have recommended "The Psychology of Money" to almost all my friends because, in my opinion, it is undoubtedly the best must-read book on investment and finance—there is no other that compares.
After finishing it, I unhesitatingly placed it on the list of must-read books I will definitely introduce to my children in the future.
I believe that even ordinary people, if they only read one book on investment and finance, it must be this one. If you can understand and grasp this book, achieving financial freedom is just a matter of time.
Unlike most finance books that "teach you how to pick stocks" or "how to arbitrage," this book focuses on how each of us interacts with money and how to become wealthy with a healthy mindset.
It is more like a financial supplement to "The Almanack of Naval Ravikant": not just motivational fluff, but those seemingly "invisible" details that determine whether you can achieve freedom.
The key is that this book is very comfortable to read. I feel that Morgan Housel's greatest characteristic is using simple language to convey profound truths, so we don't see complex models and formulas; instead, we see more of our deep-seated behaviors, desires, and fears.
Especially in the past few days, after listening to his podcast on Zhang Xiuxiu's YouTube channel and some recent interviews with the author, I still felt a sense of shock.
2️⃣ Here comes the key point; you might ask me what this book is about—
In fact, this book is quite different from traditional finance books. It does not teach you how to buy stocks or engage in arbitrage; rather, it teaches you how to interact with money and how to become wealthy without anxiety through the author's stories and thoughts.
In this sense, this book is somewhat similar to my daily tweets. It may seem useless at first glance, and many people might call it motivational fluff, but little do they know that truly useful things are hidden in these seemingly trivial areas.
Alright, back to the main topic. This book is actually telling us:
Successful investing is not an issue of intelligence but of character. We need to "deliberately practice" our character. What truly makes people wealthy is not being smart, but having the mindset of self-restraint, patience, and long-term thinking.
There are many core viewpoints that are worth our careful consideration. Here are a few points that have resonated with me the most:
- Money is not a logical issue, but a psychological one—
This is a truth I have realized after seeing countless investment cases over the past decade and after my two failures and subsequent recoveries:
Investing is truly about character, not intelligence.
Many people fail in investing not because they are not smart, but because they are greedy, fearful, unable to endure volatility, and easily follow the crowd.
Success with money is more like a marathon than a sprint.
- Time is the magic of compound interest—
He uses Buffett as an example:
Most of Buffett's wealth truly exploded after he turned 60, relying not on "magical operations," but on decades of compounding through not selling.
The greatest power of investing is not the annual return rate, but the duration of investment.
The real magic of compound interest is not an annualized 20%, but the long-term commitment to not moving; understanding this sentence is worth its weight in gold!
- Wealth ≠ showing off—
True wealth is what you cannot see.
That flashy luxury car is money spent by others; what you cannot see—savings, stable investments, and a controllable lifestyle—is the "quiet wealth."
Wealth is the money you haven't spent, while showing off is spending wealth to let others see.
- "Sufficiency" is more important than "maximization"—
Most people do not fail to make money; rather, they are never "satisfied"—
They earn and still want to earn more.
So we need to clarify that financial freedom is relative, not a competition with others; if you compare yourself to others, you will never achieve financial freedom.
This book reminds us that finding the boundary of "sufficiency" is key to happiness.
Knowing when to stop is a long-term wealth protection strategy.
- Uncertainty is the norm in the world of money—
I often tell everyone: trade less, live more freely!
Indeed, the financial market is always full of uncertainty, and trying to find a perfect strategy for certainty will only make you anxious.
What you need to do is find a method that suits your character and pace, and then "stick with it for the long term."
Summary—
Overall, this book is not as "technical" as "The Intelligent Investor," but it provides the underlying operating system for investing and money: how to have a healthy, sustainable, and anxiety-free wealth mindset.
For most people, this is more important than learning a few valuation formulas.
Moreover, it is suitable for anyone who feels anxious about money and freedom—what it teaches is not about stock trading, but how to think about life.
I know everyone is very anxious in WEB3, so I think you should really take the time to think about the questions above and, even more so, read this book!
I highly recommend everyone to check out the YouTube content again:
After watching "The Psychology of Money" ten times, I realized 7 "counterintuitive truths" about "investing and becoming wealthy." If you want to make money in the stock market, this is a must-watch.
https://youtu.be/HNwDUsvD2kY?si=Xd7Ok6sG56jwaxLJ
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