If you stopped working today and continued to live at your current standard of living, how long would you last? If you could last a month, then you are one month wealthy. If you could last five years, then you are five years wealthy. And if you could last forever, then you are indefinitely wealthy.” …
— Charlie Munger One of prospect theory’s most important contributions to finance is loss aversion, the idea that for most people, losses loom larger than corresponding gains. The empirical evidence suggests we feel losses about two to two-and-a-half times more than we feel gains. Loss aversion is a clear-cut deviation from expected utility theory.” — …
— Dan Ariely Why does cash feel so different? The agony of parting with our money has to do with the saliency of, do we see this money going away? And it has to do with the timing of whether the money is going away at the same time we’re consuming.” “For example, we find …
— Nick Murray From ‘Simple Wealth, Inevitable Wealth’ P. 25 Wealth isn’t primarily determined by investment performance, but by investor behavior.”
— Jermey J. Siegel No one is asking you not to feel the fear, because there are very few of us who ever actually become immune to the emotion. You have to be who you are, and you have to fell what you feel. You simply have to refuse to act on the feeling.” — Nick Murray from …