Finished 03/06/2020
Your Money and Your Brain
Very long book, worth rereading in the future, full of material.
Notes
- It starts with the difference between reflective and reflexive, ant/grasshopper
- Take the global view - keep a spreadsheet of your total net worth
- Hope for the best, but expect the worst - be ready for adversity and do not panic; they will be experiences. Stay the course; do not give up
- Investigate, then invest - study the company; a stock is a piece of it
- Never say always - never allocate more than 10% to a single investment
- Know what you don’t know - assume you know very little. Compare everything across different periods, look at the big picture, ask what could go wrong
- The past is not prologue - what goes down goes up, and vice versa. Do not buy something just because it is going up; do not follow the crowd
- Weigh what they say - get concrete evidence of the speaker’s past performance. Do not just believe. The past is past; luck can play a role
- If it sounds too good to be true, it probably [absolutely] is - no free lunch
- Costs are killers - compare costs and keep a steady pace; they matter
- Eggs go splat - never put everything in one place, especially in your own company
- Note: Appendix 3 may be useful; create a document/rules not to be broken