The Morgan Housel Podcast

Thanks to my friends at ⁠⁠Ramp⁠⁠ -- the best expense accounting system I've seen. For more check out ⁠⁠ramp.com/morgan.

Thanks to my friends at ⁠Ramp⁠ -- the best expense accounting system I've seen. For more check out ⁠ramp.com/morgan.

Thanks to my friends at Ramp -- the best expense accounting system I've seen. For more check out ramp.com/morgan.

Thanks to my friends at Ramp -- the best expense accounting system I've seen. For more check out ramp.com/morgan.

Thanks to my friends at Eight Sleep. Check out eightsleep.com/morganhousel for more.

Thanks to my friends at Eight Sleep. Check out eightsleep.com/morganhousel for more.

The most impactful idea to me personally in my book: My theory is that most investment models maximize for risk-adjusted returns, but in the real world every investor wants to maximize for sleeping well at night and being proud of themselves in a complicated world.Thanks to my friends at Eight Sleep. Check out eightsleep.com/morganhousel for more.

One of my favorite psychology studies showed that if you know a reward is coming, but you don't know exactly when, you are susceptible to losing your mind. Isn't it so similar in investing? Thanks to my friends at Ramp -- the best expense accounting system I've seen. For more check out ramp.com/morgan.

I heard a phrase recently: “Magazine architect.”It's a derisive term architects use for their colleagues who design buildings that look beautiful, grace magazine covers, and win awards, but lack functionality for the tenants.The same is so true for financial professionals. If you are looking for practical advice, beware hiring an artist whose goal is to be praised should be, too.Thanks to my friends at Ramp -- the best expense accounting system I've seen. For more check out ramp.com/morgan.

A few ideas on why prediction is so hard, and the weird things than happen in our head when we want certain outcome to be true. Thanks to my friends at Eight Sleep. Check out eightsleep.com/morganhousel for more.

Technology is a science. It's semiconductors and code and batteries.But Steve Jobs talked about how the iPad was playful and begged you to pick it up as much as he'd talk about its processor. The iPhone is a technological marvel, but Jobs spent a lot of time talking about how it felt in your hand, and the experience of opening the box.Job's insight, and the most important factor in Apple's success, was realizing that technology isn't merely a science. It's just as much an art.Thanks to my friends at Ramp -- the best expense accounting system I've seen. For more check out ramp.com/morgan.

A few things you might consider disadvantages that actually, in hindsight, could end up as something you're grateful for. Thanks to my friends at Eight Sleep. Check out eightsleep.com/morganhousel for more.

A simple formula for a pretty nice life is independence plus purpose.Purpose is different for everyone. Sometimes it's family, sometimes it's community, religion, work, whatever.But independence is more universal. Our desire to be independent, why we want it, what prevents us from achieving it, and why some people sabotage their ability to have it, is such a common story across cultures and generations.Thanks to my friends at Eight Sleep. Check out eightsleep.com/morganhousel for more. 

A collection of things I've been thinking about lately that I hope you find valuable regardless of your profession. Thanks to my friends at Eight Sleep. Check out eightsleep.com/morganhousel for more. 

A story about how tails drive everything, and why the vast majority of your success in investing and in life will come from just a few of the things you do. Thanks to my friends at Ramp -- the best expense accounting system I've seen. For more check out ramp.com/morgan.

Everyone knows one version of the world -- the one that's actually happened. But that's just one of infinitive possibilities that could have occurred. I asked ChatGPT to write different versions of how my life could have ended up, and was stunned by the results. I'd be you'd have the same experience. Thanks to my friends at 10 East -- check out 10east.co.

Most people – and definitely society as a whole – seem to have a minimum level of stress. They will never be fully at ease because after solving every problem the gaze of their anxiety shifts to the next problem, no matter how trivial it is relative to previous ones.Thanks to my friends at Ramp -- the best expense accounting system I've seen. For more check out ramp.com/morgan.

A look at the big story dominating this year: tails drive everything, and everything from businesses to careers either work extraordinarily well, or not at all. With thanks to my friends at Nitrogen: check out nitrogenwealth.com.

A look at why so many Americans think the best was better than it was: People in the past may have been poorer than we are now, but they probably did a better job keeping their expectations in check. Thanks to my friends at nitrogenwealth.com.

The world evolves faster than people's beliefs do. This episode looks at the need to change your mind, and why it's so difficult to do so. 

A few laws from random sciences that almost certainly apply to your own -- regardless of what you do for a living. 

If you're a student of history, you know that most things have gotten better for most people over time. But read the news and what do you hear? Pessimism, pessimism, pessimism. There are several reasons why. Special thanks to my friends at Readwise -- check out Readwise.IO/morgan.

A few easy-to-overlook skills that are so vital in today's world. Brought to you my friends at Readwise -- visit Readwise.io/morgan. 

This episode digs into one of my favorite books of all time: The Big Change by Frederick Lewis Allen. Written in 1952, it's a remarkable look at how quickly the world can change, with so many profound insights that I find relevant today. Special thanks to my friends at Readwise.io for making this happen. 

There's a Russian saying that I love: "The past is more unpredictable than the future." It explains so much about nostalgia, and the twisted ways we all view the economic past.This episode is brought to you by my friends at 10 East – an investment platform for sophisticated investors to access private markets. To learn more visit 10east.co.

A lot of mistakes in life come when you think risk is something caused by external forces, when in fact the weight of your own success is enough to pull you down without any outside help.This episode is brought to you by my friends at 10 East – an investment platform for sophisticated investors to access private markets. To learn more visit 10east.co.

The ultimate success metric is whether you get what you want out of life. But that's harder than it sounds because it's easy to try to copy someone who wants something you don't.This episode is brought to you by my friends at 10 East – an investment platform for sophisticated investors to access private markets. To learn more visit 10east.co.

Some of the most interesting stuff I've come across lately. 

In some fields our knowledge is seamlessly passed down across generations. In others, it's fleeting. To paraphrase investor Jim Grant: Knowledge in some fields is cumulative. In other fields it's cyclical (at best).

Jeff Bezos once said there are different kinds of smart. Distinguishing the various flavors is important because if you think smarts comes in just one form, you'll miss dozens of other nuanced varieties.BS is the same. It comes in countless forms, some harder to spot than others. False modesty, projecting, double standards, hypocrisy, tugging at heartstrings – these aren't lies; they're subtle forms of BS which is why they're so prevalent.

A few important money and life topics to make you ponder. 

"Nature is not in a hurry, yet everything is accomplished,” said Chinese philosopher Lao Tzu.Giant sequoias, advanced organisms, towering mountains – it builds the most jaw-dropping features of the universe. And it does so silently, where growth is almost never visible right now but staggering over long periods of time.It's quiet compounding, and it's a wonder to see.I like the idea of quietly compounding your money. Just like in nature, it's where you'll find the most impressive results.

My deepest forecasting belief is that you can better understand the future if you focus on the behaviors that never change instead of the events that might.And those behaviors have a common denominator: They follow the path of least resistance of people trying to simplify a complex world into a few stories that make sense and make them feel good about themselves.Simple stories, feel-good stories. Those are some of history's most seductive beliefs, and they always will be.Here are a few that stick out.

The most productive work you can do often looks like the laziest -- but it can be hard to accept that because of how the workplace has changed over the last 100 years. 

Every great idea can be taken too far. Take the notion that investors should ignore the short run.It's important to recognize that the long run is just a collection of short runs, and capturing long-term growth means managing the short run effectively enough to ensure you can stick around for a long time.

I wrote letters to both of my kids the day before they were born. Here's what I wanted them to know about money. And even if you don't have, or want, kids, I think you'll find this helpful. 

Hacks are hard because shortcuts rarely exist. Prizes take time and effort.The personal finance industry – filled with advice that sounds and feels good without moving the needle – needs to recognize this.These aren't fun hacks, but no one said this was easy.

Luck plays such a big role in the world. But few people want to talk about it. If I say you got lucky, I look jealous. If I tell myself that I got lucky, I feel diminished.Maybe a better way to frame luck is by asking: what isn't repeatable?And maybe better yet: The way to get luckier is to find what's repeatable.

The fun part of behavioral finance is learning about how flawed other people can be. The hard part is trying to figure out how flawed you are, and what stories make sense to you but would seem crazy to others.

A few of the best and most insightful things I've read lately. 

Woodrow Wilson was the only president with a Ph.D. in political science.He came to office having thought more about how a government functions than most before him or since.One of his complaints was that too many people in government held the belief that it was a Big Machine: that once you set up a series of rules you could take your hands off the wheel and let the government run on its own forever. They viewed government like physics, with a set of customs and laws that required no updating or second-guessing because they were believed to be precise and perfect as they were.Wilson thought that was wrong. He viewed government as being a living thing that adapted and evolved. I really don't care about politics. But he had a theory that I think is so important, and so applicable, to us ordinary people managing our money. 

Mae West said, “Too much of a good thing can be wonderful.” That might be true for some things – health, happiness, golden retrievers, maybe.But in so many cases the thing that helps you can be taken to a dangerous level. And since it's a “good thing,” not an obvious threat, its danger creeps into your life unnoticed.Take intelligence. How could someone possibly be too intelligent? How do you get to a point where you realize you could have been more successful if you had been a little dumber?Let me share three reasons why. And if you're looking for another podcast to listen to, check out The Rundown by my friends at Public.com. It's a quick five-minute listen that gets you all caught up on the latest in the stock market, the economy, and in crypto. Hope you enjoy it. 

This episode discusses my take on what you should pay attention to when reading history. There's a quote I love from writer Kelly Hayes who says, “Everything feels unprecedented when you haven't engaged with history.”It's so true. History's cast of characters changes but it's the same movie over and over again.To me, the point of paying attention to history is not the specific details of certain events, which are always random and never repeat; it's the big-picture behaviors that reoccur in different eras, generations, and societies.

Let me share a little theory I have about optimism, and why progress is so easy to underestimate.I'll explain it in four parts.

Behavioral finance is now well documented. But most of the attention goes to how people invest. But the study of how you spend money might be far more interesting -- and practical. How you spend money can reveal an existential struggle of what you find valuable in life, who you want to spend time with, why you chose your career, and the kind of attention you want from other people.There is a science to spending money – how to find a bargain, how to make a budget, things like that.But there's also an art to spending. A part that can't be quantified and varies person to person.

There's obviously a hierarchy of information. It ranges from life-changing good to life-changing disastrous.That got me thinking: What would be the most interesting and useful information anyone could get their hands on?Years ago I asked that question to Yale economist Robert Shiller. “The exact role of luck in successful outcomes,” he answered.I loved that answer, because nobody will ever have that information. But if you did, your entire worldview would change. Who you admire would change. The traits you think are needed for success would change. You would find millions of lucky egomaniacs and millions of unlucky geniuses. The fact that it's impossible to possess this information doesn't make it useless – just thinking about how powerful it would be to have it forces you to ponder a topic that's important but easy to ignore.Keeping the idea that the most interesting information doesn't have to be realistic – it can be impossible-to-obtain, magical-wish thinking – here are three other things that would get your attention.

There are two big ways to learn: Active learning: Someone tells you what to learn, how to learn it, on a set schedule, on pre-selected standardized topics.Passive learning: You let your mind wander with no intended destination. You read and learn broadly, talk to people from various backgrounds, and stumble haphazardly across topics you had never considered but spark your curiosity, often because it's the topic you happen to need at that specific time of your life.I can't be alone in realizing that most of what I've learned in life has come from passive learning.

One sentence that knocked me off my feet when I read Will and Ariel Durant's The Lessons of History was: "Learn enough from history to bear reality patiently, and respect one another's delusions."I love that so much.The key here is accepting that everyone is deluded in their own unique way. You, me, all of us.When you realize that you – the good, noble, well-meaning, even-tempered, fact-driven person that you are – have views of how the world works that are sure to be incomplete if not completely wrong, you should have empathy for others whose deluded beliefs are obvious to you. I am such a fan of Daniel Kahneman's observation that we are better at spotting other people's flaws than our own.This episode shares three reasons why all of us become deluded in our own way. 

My wife recently bought me an old book. It's called The Mathematical Theory of Investment. It was written in 1913 and it's as dry and boring as it sounds (but the old weathered cover looks awesome on a bookshelf). I flipped through it and thought, "Does any of this matter?" These formulas, these charts, this data?Well, yes. But not nearly as much as the soft, behavioral side of investing. This episode shares 10 of what I think are the most critical financial skills -- none of which you'll find in a 100-year-old academic text. 

Expiring skills tend to get more attention. They're more likely to be the cool new thing, and a key driver of an industry's short-term performance. They're what employers value and employees flaunt.Permanent skills are different. They've been around a long time, which makes them look stale and basic. They can be hard to define and quantify, which gives the impression of fortune-cookie wisdom vs. a hard skill.But permanent skills compound over time, which gives them quiet importance. When several previous generations have worked on a skill that's directly relevant to you, you have a deep well of relevant examples to study. And when you can spend a lifetime perfecting one skill whose importance never wanes, the payoffs can be ridiculous. Anything that compounds over decades usually is.This episode discusses a few permanent skills that apply to many fields.

My new book, Same as Ever: A Guide to What Never Changes, is out today. Books are hard, a multi-year slog from start to finish. But I'm excited for you to read this. I think it's the best writing I've ever done. And it was fun to write! My hope is that you enjoy reading it half as much as I enjoyed writing it. My first book, The Psychology of Money, was really about how you, the individual behave. Same As Ever is about how we, the collective, behave, and what we keep doing over and over. It's 23 short stories about what never changes in a changing world. I've been thinking about this book for my entire career. I've always been skeptical of forecasts, because the world's track record on predicting the next recession, the next election, or the next technology is so bad. That should draw you to the question: What's never going to change?What do we know for certain is going to be part of our future?