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#584December 20, 202338:38

The Investment Strategy To Build Generational Wealth (ft. Morgan…

The psychology of enoughLong-term compoundingGlobal demographic shiftsHistorical patterns of human behavior

About This Episode

In this episode, Sam and Shaan interview best-selling author Morgan Housel to discuss the psychology of wealth and the power of long-term compounding. They explore why 'strategic mediocrity' often leads to superior financial outcomes and why understanding human behavior is more important for investors than making market predictions.

Episode Description

Episode 533: Shaan Puri (https://twitter.com/ShaanVP) and Sam Parr (https://twitter.com/theSamParr) talk to Morgan Housel about the psychology of building generational wealth and the one strategy that works better than any 20% return.  No more small boy spreadsheets, build your business on the free HubSpot CRM: https://mfmpod.link/hrd

Show Notes

  • 0:00Intro
  • 2:30Strive for averageness
  • 12:00Financial anti-goals
  • 14:30Sam and Morgan argue about money and anxiety
  • 17:30Biggest psychological trap with money
  • 22:00The biggest risk no one is talking about
  • 26:00Worry about what doesn't change
  • 29:00How to action sameness
  • 32:00Morgan's history book diet

Key Takeaways

1

Aim for 'strategic mediocrity' by seeking average returns for an above-average period of time, which leads to top-decile wealth through compounding.

2

Define your financial goal based on the reduction of anxiety and contentment rather than chasing an ever-moving goalpost driven by social comparison.

3

Focus on studying what never changes in human behavior—such as responses to greed and fear—instead of trying to forecast unpredictable 'black swan' events.

Featuring

MH

Morgan Housel

2 episodes

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Quick Stats

Duration38:38
Guests1
Ideas Discussed0
Topics4