If You're Curious About These Questions...
You should listen to this audiobook
- Have you ever wondered why your own brain might be the biggest obstacle standing between you and investment success?
- Did you know that our natural human instincts are often the exact opposite of what’s required to build wealth?
- What’s the secret to remaining calm and making rational financial decisions even when the market is in a freefall?
Listen to The Laws of Wealth — Free Audiobook
Key Takeaways from The Laws of Wealth
- Understand why your greatest investment risk isn't a stock market crash, but your own irrational behavioral biases and emotional vulnerabilities.
- Discover how overconfidence bias causes you to credit wins to talent and losses to bad luck, keeping you from growing as a savvy investor.
- Find out how extreme emotions—from deep sadness to intense excitement—cloud your judgment and lead to gullible or reckless financial decisions.
- Learn why simply knowing financial rules isn't enough to prevent panic, and how a financial advisor can secure better yields by acting as your behavioral coach.
- Master the strategy of the investment 'pre-mortem' by using a professional devil's advocate to expose potential pitfalls before your enthusiasm costs you money.
Learning Tools
Reinforce what you learned from The Laws of Wealth
Mind Map
Quiz — Test Your Understanding
The Laws of Wealth — Full Chapter Overview
Chapter 1: Recommendation
Chapter 2: We overrate our abilities in life, including when investing, too.
Chapter 3: Emotional states can impair our ability to make good decisions.
Chapter 4: One of the smartest investment decisions you can make is to hire an advisor.
Chapter 5: Don't panic about market panic.
Chapter 6: Learn to spot a suspect company by judging what management really does, not what it says.
Chapter 7: The highest price isn't always right; when investing, choose value over glitz and glamour.
Chapter 8: Be cautious about being lured by new and exotic investments.
Chapter 9: We need to invest our money guided by personal goals, rather than following other people’s rules.
The Laws of Wealth Summary & Overview
The Laws of Wealth (2016) is an insightful guide to understanding how our irrational behavior can get in the way of making good investment decisions. Using insights from the field of behavioral psychology, Daniel Crosby identifies key human weaknesses that can sabotage our investments, such as overestimating our abilities and panicking in the face of risk. He then presents practical and effective strategies that we can adopt to become better investors.
Who Should Listen to The Laws of Wealth?
- Investors wanting to learn how to spot their behavioral blind spots
- Psychology buffs interested in how emotions influence how people spend money
- Anyone who is weighing up the benefits of hiring a financial advisor
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