Similar to the author's first book ' The Psychology of Money', this book talks about themes that are knowable but yet you somehow miss it.
The book contains 20-over theme, such as:
- The biggest risk is what you don't see coming. So as Nassim Taleb noted "Invest in preparedness, not in prediction." And, in personal finance, the right amount of savings is when it feels it's a little too much. i.e. have a margin of safety
- Low expectations create happiness. 1950s was thought as the best period in US, not because it is better than now, but rather the gap between you and other people is smaller
- Calm seeds plant the seed of crazy.
Minky's financial instability hypothesis:- When an economy is stable, people gets optimistic.- When people gets optimistic, they go into debt.- When they go into debt, the economy becomes unstable.- Amazing things happen when tiny and insignificant things compounds into something extraordinary.
In evolution, time -- not the little changes -- is what moves the needle
In investing, the most important question is not "How can I earn the highest return?" It's "What are the best returns I can sustain for the longest period of time?"
The book is available as e-book in National Library (NLB) Overdrive.
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