Many of us try and make the most of a world where there’s plenty of information and insight all around through books, blogs, podcasts, etc. Yet, only some of us manage to draw insights or ideas that can change our lives meaningfully. Morgan Housel, the author of ‘The Psychology of Money’, is perhaps one of the best finance writers around who can connect the dots from various fields into an idea that can have a significant influence on our lives. In this blog, he puts out a few ideas that changed his life:

“Everyone belongs to a tribe and underestimates how influential that tribe is on their thinking. There is little correlation between climate change denial and scientific literacy. But there is a strong correlation between climate change denial and political affiliation. That’s an extreme example, but everyone has views persuaded by identity over pure analysis. There’s four parts to this:

  • Tribes are everywhere: Countries, states, parties, companies, industries, departments, investment styles, economic philosophies, religions, families, schools, majors, credentials, Twitter communities.
  • People are drawn to tribes because there’s comfort in knowing others understand your background and goals.
  • Tribes reduce the ability to challenge ideas or diversify your views because no one wants to lose support of the tribe.
  • Tribes are as self-interested as people, encouraging ideas and narratives that promote their survival. But they’re exponentially more influential than any single person. So tribes are very effective at promoting views that aren’t analytical or rational, and people loyal to their tribes are very poor at realizing it.”

We list a few others here but worth reading the blog in its entirety:

  • “Everything’s been done before. The scenes change but the behaviors and outcomes don’t.
  • Multi-discipline learning: There’s as much to learn about your field from other fields than there is within your field.
  • Self-interest can lead people to believe and justify nearly anything.
  • Room for error is underappreciated and misunderstood.
  • Your personal experiences make up maybe 0.00000001% of what’s happened in the world but maybe 80% of how you think the world works.”

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Note: the above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India as a provider of Portfolio Management Services. Marcellus Investment Managers is also regulated in the United States as an Investment Advisor.

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