How I Invest My Money – by Joshua Brown and Brian Portnoy
Recommendation: 8/10. Date read: 2/11/21.
Instead of financial gurus preaching what you should do with your money, this book is a collection of essays by 25 financial experts detailing how they invest, save, spend, give, and borrow in their own lives. Through reflection and personal stories, each expert breathes life into the how and why of their investments. Each investment strategy is quite different which illustrates a key point of the book, there’s no single “right” way. What matters most is that you’re thoughtful and true to yourself in your approach.
See my notes below or Amazon for details and reviews.
My Notes:
Independence:
“I did not intend to get rich. I just wanted to get independent.” Charlie Munger
“I mostly just want to wake up every day knowing my family and I can do whatever we want on our own terms. Every financial decision we make revolves around that goal.” Morgan Housel
“Independence, to me, doesn’t mean you’ll stop working. It means you only do the work you like with people you like at the time you want for as long as you want.” Morgan Housel
Get the goal post to stop moving: “Independence, at any income level, is driven by your savings rate. And past a certain level of income your savings rate is driven by your ability to keep your lifestyle expectations from running away.” Morgan Housel
Define what is enough: simplify by finding the line between excess and satisfaction.
Investing strategy:
High savings + patience: “My investing strategy doesn’t rely on picking the right sector, or timing the next recession. It relies on a high savings rate, patience, and optimism that the global economy will create value over the next several decades.” Morgan Housel
Get the big stuff right: “Getting the big stuff right—living within their means, setting a reasonable savings rate, staying employed—will be a bigger determinant of whether they reach their goals than will their investment selections.” Christine Benz
Invest in yourself: “Invest in yourself. Your ability to work is your safest and highest returning asset. By lifelong learning, and taking care of your physical health, mental health, and relationships, you are much more likely to lead a secure and satisfying life without regrets.” Carolyn McClanahan
You biggest asset is your earning power: “I’m about 40, and plan on working for another 20 years. So, my biggest asset is still my earning power—my ability to turn my time and effort into money.” Dan Egan
Working matters more than investments: “I wonder if the greatest trick the devil ever played on investors is making them think it is the investing part that matters most. The working part moves the needle more, both for the math of deposits but also in the discipline of a purpose.” Ryan Krueger
Maximize for choice: “Having options and a little bit of luck are the key to financial security.” Debbie Freeman
Avoid the herd: “The more intensely and emotionally a lot of people ‘hate on’ a particular investment, that is a good signal to buy.” Joshua Rogers
Move with purpose:
“You have exactly one life in which to do everything you will ever do. Act accordingly.” Colin Wright
Karma:
“Karma may be important in achieving wealth accumulation, but karma is definitely important in wealth preservation.” Joshua Rogers