No More Broke

• Doing well with money has little to do with how smart you are, and a lot to do with how you behave.
• Financial success is not hard science, it’s a soft skill where how you behave is more important than what you know.
• To grasp why people bury themselves in debt, you need to study the history of greed, insecurity, and optimism.
• Not all success is due to hard work, and not all poverty is due to laziness. Keep this in mind when judging people, including yourself

• Someone driving a $100,000 car might be wealthy. Or he may just be poorer by $100,000.
• We tend to judge wealth by what we see because that is the information we have in front of us.
• Wealth is the nice cars not purchased, the diamonds not bought, the watches not worn, and the first-class upgrade declined.
• Wealth is financial assets that have not yet been converted into the stuff you see.

The only way to be wealthy is to not spend the money that you do have. It’s not just the only way to accumulate wealth, it is the very definition of wealth.

• Short-term traders ignore the rules governing long-term investing, particularly around valuation. Because those rules are irrelevant to the game they are playing.
• Bubbles do their damage when long-term investors playing one game start taking their cues from short-term traders playing another game.
• It is hard to grasp that other investors have different goals than we do.
• An anchor of psychology is not realizing that rational people can see the world through a different lens than their own.