2minuteCreations

The Psychology of Money written by Morgan Housel is a short description of human behavior when it comes to money. It is a short book which has chapters that deals with different human behavioral topics and can also be read individually. The penultimate chapter provides a brief but accurate summary of all the chapters and also deals with the author's personal investing choices. The contents of the book look at the broad behavioral patterns and try to link it with the world of investment and finance. The book largely takes a case study approach and provides various real life examples when describing a particular situation. General topics like ‘Power of Time in Compounding’ and ‘Optimism and Pessimism’ are discussed along with nuanced topics like ‘Our thinking regarding other’s Wealth’. The author emphasizes the role of history affecting our decisions and how it is a very human trait to hold reasonable thinking over rational thinking when it comes to financial decisions. This book exp...