Review of Pschology of Money
Tags: books
These are my rough notes while reading this book
Most of the premise of the book seems to be wait and invest. Let the money grow in compound interest over years.
He is not advocating any strategy to get rich quicker? He says highest returs are usually one-off hits that can't be repeated.
Jesse Livermore made a fortune when stocks collapsed in Great Depression of 1929. He shorted the stocks. I've yet to learn to short the stock.
Getting money requires taking risk. But staying wealthy requires opposite of taking risk. It requires frugality and acceptance of the fact that some of your success is attributed to luck which can't be repeated.
Jim Simmons achieved better investment returns than Warren Buffett. Yet he was less wealthy than Buffett. The main reason was that Warren Buffett started investing at young age, and compounded his money for decades. In contrast, Jim Simmons began investing around his 40s.
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