Morgan Housel Tag Archive

Compounding is returns leveraged with time

(Excerpt from Last Man Standing by Morgan Housel) … compounding is just returns leveraged with time. Earning a 20% return in one year is neat. Doing it for three years is cool. Earning 20% per year for 30 years...

Investing, Nonlinearity Read More

Business and Investing are multi-disciplinary

(Excerpt from A Few Things I’m Pretty Sure About by Morgan Housel) An engineer can have a successful career knowing nothing other than engineering. Same for a chemist, meteorologist, or radiologist. Business and...

Business, Investing Read More

Ben Graham kept changing his investment formulas and ultimately investing became too competitive

(Excerpt from The Psychology of Money by Morgan Housel) Graham was constantly experimenting and retesting his assumptions and seeking out what works—not what worked yesterday but what works today. In each revised...

Adaptability, Investing Read More

Time is the important driver of investment returns

(Excerpt from The Psychology of Money by Morgan Housel) As I write this Warren Buffett’s net worth is $84.5 billion. Of that, $84.2 billion was accumulated after his 50th birthday. $81.5 billion came after he...

Investing, Nonlinearity Read More

Focus on staying in the game until the odds fall in your favour

(Excerpt from The Psychology of Money by Morgan Housel) The trick when dealing with failure is arranging your financial life in a way that a bad investment here and a missed financial goal there won’t wipe...

Investing, Luck, Randomness Read More

Super successful individuals are cases of extreme luck

(Excerpt from The Psychology of Money by Morgan Housel) …focus less on specific individuals and case studies and more on broad patterns. Studying a specific person can be dangerous because we tend to...

Luck, Randomness, Success, Survivorship Bias Read More

Ben Graham’s return was largely delivered by GEICO

(Excerpt from The Psychology of Money by Morgan Housel) Benjamin Graham is known as one of the greatest investors of all time, the father of value investing and the early mentor of Warren Buffett. But the majority of...

Investing, Luck, Randomness Read More

Investing strategies need to evolve

(Excerpt from Keep Running! By Morgan Housel) In his book Investing, Robert Hagstrom wrote about strategies that once worked but eventually withered: In the 1930s and 1940s, the discount-to-hard-book-value strategy...

Adaptability, Investing, Map Is Not Territory Read More

Changing your strategy or be patient?

(Excerpt from The Laws of Investing by Morgan Housel) Benjamin Graham published several editions of his book The Intelligent Investor, with each new edition swapping out old formulas for new ones that worked. This...

Investing, Randomness Read More