Skip to main content

THE PSYCHOLOGY OF MONEY - BOOK IMPRESSIONS

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 explains the concepts of financial crises, recessions and bubbles extremely well for a novice person. It specifically takes into account how relatively unrelated events can cause a chain reaction and shape the world as we know today.


For the post-script, there is a well explained timeline of 'American public's thinking' regarding finance & savings and how it changed since WW-II. It marks important highlights and induces curiosity in the reader to know more.


Overall this book is a good read for a person trying to understand finance through the minds of people who actively work in the domain.
Labels:

Comments

Post a Comment

Popular posts from this blog

2minutes speech on TEACHER'S DAY 2020

 The mere fact that we are all connected  in this event makes me feel so elated and motivated to express my thoughts on this unconventional  yet eventful day today. Good Morning and a very happy Teacher's Day to all.                           A teacher is someone who teaches, and mind you, it is not just academics. Not everyone can be a teacher, because despite everything what a teacher teaches first is the way of life.               Though teachers day is globally celebrated on 5th October, in India we celebrate it on 5th of September, to commemorate the birth anniversary of Dr. S Radhakrishnan , the second president of Republic of india and a profound teacher himself. He believed that "children are the future of the nation and it is only in the teachers hands that could shape it". ...
Post a Comment
Read more

AN ESSAY - My Most Memorable Railway Journey

  Railways are the nation’s favorite long-distance commuter. It is very affordable and I have been traveling by train from time immemorial. Railways have always felt welcome. My most memorable journey was along a route I travel very often. The Anuppur-Ambikapur route has some really obscure railway stations of Chhattisgarh. I was travelling to my grandparents’ place. What made this journey memorable was its timing. We usually travelled at night. But this time, it was a day run. The journey was simply amazing. The route cuts through hilly areas. With numerous tunnels, bridges and a little brook here and there, the journey was a feast for my eyes. The stations and the people were a completely different story. Ever heard of a junction that doesn’t sell tickets, visit Boridand. Or a station that provides tickets on small yellow hard-paper cards, visit Nagpur Rd. The Chhattisgarhi people are quiet, but you feel the hidden energy in them when you approach a station. The language they s...
Post a Comment
Read more