Last month, a friend of mine turned down a $50,000 consulting project because his calendar was completely booked. Two weeks later, a $250,000 opportunity emerged—but he couldn’t take that either. He had optimized himself into a corner. This scenario illustrates one of the most powerful ideas from Morgan Housel’s The Psychology of Money: The Opportunity […]
Words Into Works #112 | The Circle of Competence
Warren Buffett, one of the most successful investors of all time, often emphasizes the importance of understanding one’s “Circle of Competence.” Although simple, this concept forms the bedrock of Buffett’s investment strategy and has profound implications beyond finance, including personal development and business decision-making. The Circle of Competence refers to the specific area of knowledge […]
Words Into Works #100 | Rational Optimism
In his book, Same as Ever, Morgan Housel addresses the complex interplay between optimism and pessimism, emphasizing the necessity of balancing these seemingly contradictory mindsets for progress. He suggests that the best approach in life, particularly in finance, is to save like a pessimist but invest like an optimist. Housel illustrates this philosophy through various […]
Words Into Works #077 | The Three Secrets to Financial Freedom
In his book, The Latte Factor, David Bach discusses three secrets to achieving financial freedom, positing the idea that small everyday expenses can accumulate over time and hinder your ability to build wealth. Back writes that by making small changes in your daily habits, you can redirect your money towards savings and investments, ultimately leading […]