BEST BOOK The Psychology of Money 2020

 

The Psychology of Money

Timeless lessons on wealth, greed, and happiness doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people. Managing money, investing it, and making business decisions are typically considered to involve many mathematical calculations, where data and formulae tell us exactly what to do. But in the real world, people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In the psychology of money, the author shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important matters.

• Publisher: Jaico Publishing House (1 September 2020); Jaico Publishing House, JA-1, Jash Chambers, Off Sir Phirozshah Mehta Road, Fort, Mumbai, Maharashtra 400023 Phone: 022 4030 6767
• Language: English
• Paperback: 252 pages
• ISBN-10: 9390166268
• ISBN-13: 978-9390166268
• Item Weight: 454 g
• Dimensions : 20 x 14 x 4 cm
• Country of Origin: India
• Importer: Jaico Publishing House, JA-1, Jash Chambers, Off Sir Phirozshah Mehta Road, Fort, Mumbai, Maharashtra 400023 Phone: 022 4030 6767
• Packer: Jaico Publishing House, JA-1, Jash Chambers, Off Sir Phirozshah Mehta Road, Fort, Mumbai, Maharashtra 400023 Phone: 022 4030 6767
• Generic Name: Paperback Book

• Best Sellers Rank: #1 in Books (See Top 100 in Books)
  • #1 in Personal Transformation
  • #1 in Analysis & Strategy

• Customer Reviews: 
  4.5 out of 5 stars    10,210 ratings

See guys this book is for those who have had a lot of Their skin in the stock market game and thought of creating wealth from it.
The first level of investor is the one who knows money can be made in the market, but doesn't know how and starts to trade without any knowledge.
The second level investor has made a profit or loss on his capital and starts to find out where did he has gone wrong and starts learning about some basic concepts such as PE ratio.
The third level of an investor starts finding value in whatever the scrip he has been following and starts finding justification for being costly or cheap and buying or selling them.
A fourth-level investor follows and checks if the price has gone up or not very often and loses faith if it doesn't go up after he bought it, and if the price doesn't go up he sells it and looks for another one. in a short span of months. Again goes back to the drawing board and finds what went wrong.

Then comes the whole talk of buffetology and starts to find companies like that and invest in them if he felt that it was cheap.

But everyone forgets that buffet is buffet because of his principles and patience which helped him in compounding for a very long time such as 70-80 years which very few do it. That's when actually psychology matters and thats what Morgan tries to tell us in this book that more than analysis of the scrip, the conviction that you calculated and the patience to hold it at least for several decades remains intact only then the wealth would be created or else you would be just a person among a crowd doing nothing but ordinary things in life. And explains that the world is actually big and we are just a blip in it. It gives us all great humility and convinces us to be humble and show gratitude to others.