"Money has much more to do with psychology than with finance."
When it comes to money, we believe we need to know certain facts, rules, and laws. We assume the world of finance is the world of mathematics, where data and formulas tell you exactly how to behave – and people will then act accordingly. But the opposite is true: In the real world, people don't make their financial decisions based on a spreadsheet. They make them over dinner or during a meeting, where personal history, individual worldviews, egos, and other unpredictable influences converge. It's primarily about psychology, emotions, and gray areas.
Using 20 short stories, the award-winning author Morgan Housel vividly illustrates that when it comes to money matters, what matters is not how much theoretical knowledge someone has, but how they behave in a stressful situation.
About the author:
Morgan Housel was a columnist for The Motley Fool and The Wall Street Journal. Today he is a partner at the venture capital firm The Collaborative Fund. He is a two-time winner of the Society of American Business Editors and Writers' Best in Business Award and a winner of the New York Times Sidney Award.
