#132 Morgan Housel: Save Like A Pessimist And Invest Like An Optimist

The Julia La Roche Show

Bestselling author Morgan Housel, partner at The Collaborative Fund and first-ever guest on The Julia La Roche Show returns for episode 132 to discuss his newest New York Times Bestseller Same As Ever: A Guide to What Never Changes. Morgan’s first book The Psychology of Money has sold over four million copies and been translated into 50 languages worldwide.

Morgan is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, and winner of the New York Times Sidney Award. In 2022, MarketWatch named him one of the 50 most influential people in markets. He serves on the board of directors at Markel.

Takeaways

• Managing expectations is crucial for happiness and success.
• Social media can lead to inflated expectations and feelings of inadequacy.
• Envy and the pursuit of status and success can hinder happiness.
• Unforeseen consequences and tail risks play a significant role in shaping our lives.
• Personal experiences can shape our perception of risk and influence our decision-making. Economic forecasts are in high demand because they reduce uncertainty, even if their track record is poor.
• Calm periods in the economy or markets can lead to instability and eventual crises.
• Simplicity and endurance are key to successful long-term investing.
• Charlie Munger's legacy lies in his wisdom and willingness to share it with others.
• Writing is a process of self-discovery and learning.

Timestamps

00:00 Introduction and Catching Up

01:08 Surprising Success of 'The Psychology of Money'

02:24 The Value of Low Expectations

04:08 Managing Expectations and Balancing Optimism

07:28 The Dangers of High Expectations and Social Media

09:37 The Gap Between Expectations and Reality

12:59 The Inflation of Expectations

15:11 The Impact of Social Media on Happiness

18:30 Envy and the Pursuit of Status and Success

23:39 Risk and the Unforeseen Consequences

26:17 The World Hanging by a Thread

31:41 Personal Story: Skiing Accident and Risk Aversion

40:32 The Demand for Economic Forecasts

43:01 Calm Plants the Seeds of Crazy

46:00 Investment Strategy: Simplicity and Endurance

48:23 Charlie Munger's Legacy

51:08 Writing for Self-Discovery