[打卡]阅读打卡第17天 - The Psychology of Money

Progress: 103

Notes:

• ·       “Apply the survival mindset: survive long enough for compounding to work wonders” à “compounding does not rely on big returns”, you can make good returns, but sustain it for the longest time for compounding to work

• ·       Be prepared that things may not go as planned (e.g. 911, 2018 financial crisis, COVID 19  pandemic… etc) à allow margin of safety to increase your chances of survival

• ·       Stay optimistic about the future, but paranoid about what will prevent you from getting there à long term optimism, short term paranoia 居安思危

• ·      “Tails drive everything” à e.g. in an index fund, 40% of the companies are failures, the 7% that perform extremely well effectively offset those failures à you can be wrong half of the time and still make good returns à “success depends not on whether you are right or wrong, but how much money you make when you are right & how much you lose when you are wrong” à focus on the long term, do not be wavered by short term terrors

• ·       Gaining control of time is the highest dividends money pays = the foundation of happiness à [imagine the ability to wake up every morning and say, “I can do whatever I want today!”] à this is the ultimate goal you want to achieve with money

• ·       Using money to buy fancy things (including big homes, cars, clothes…etc.) will not bring you respect and admiration. Others will gawk on those things, imagining themselves in them, but almost NEVER give a thought to the people in them; “Humility, kindness & empathy will bring you more respect than horsepower ever will”

• ·       Wealth is not to spend the money that you do have. Wealth is hidden, what you don’t see. Wealth is to exercise self-control.