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The Psychology of Money
Reasonable > Rational
(Chapter 11)
“Do not aim to be coldly rational when making financial decisions. Aim to just be pretty reasonable. Reasonable is more realistic and you have a better chance of sticking with it for the long run, which is what matters most when managing money.”
Historical odds of making money increase over time. Lesson: stick to your guns and don’t let short-term volatility force a bad decision. Example: Positive returns overa one-year period are 68% likely, 88% likely over 10 years, and 100% likely over 20 years.
About the Author
Michael George Knight
This book summary has been contributed by Michael George Knight, who is the founder of Bestbookbits.com Bestbookbits is the world's largest free book summary website in video, written and audio format educating people around the world with the best book bits in the shortest amount of time. They are a nonprofit organization with the mission to create an educated world. You can read many other book summaries on various genres by clicking on the following link: Bestbookbits.com
