The document discusses key concepts from the psychology of money including the role of luck and risk in success and failure, the influence of rare events or "long tails" in finance, and the importance of understanding your own time horizon and investment goals rather than comparing yourself to others. It also lists several brief insights about money including that success has more to do with behavior than intelligence, the difficulty of sticking to financial goals, the subjective nature of what seems sensible, and the role of data and expectations in finance.

1. THE PSYCHOLOGY OF MONEY
BY MORGAN HOUSEL
MY FAVOURITE
BITS

2. LUCK AND RISK
“But more important is that as
much as we recognize the role of
luck in success, the role of risk
means we should forgive ourselves
and leave room for understanding
when judging failures.”
Long tails
“Long tails – the farthest ends of a
distribution of outcomes – have
tremendous influence in finance,
where a small number of events
can account for the majority of
outcomes.”
What game are
you playing?
“Few things matter more with
money than understanding your
own time horizon and not being
persuaded by the actions and
behaviours of people playing
different games than you are.”
TOP OF MY MIND

3. One TWO
“doing well with money
has a little to do with
how smart you are and
a lot to do with how
you behave”
THREE
“The hardest financial
skill is getting the
goalpost to stop
moving.”
SIX
“What seems crazy to
you might make sense
to me.”
FIVE
“Everything in finance is
data within the context
of expectations.”
FOUR
“Therefore, focus less on
specific individuals and
case studies and more on
broad patterns.”
2 3
4 5 6
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