#702: Morgan Housel — Contrarian Money and Writing Advice, Three Simple Goals to Guide Your Life, Journaling Prompts, Choosing the Right Game to Play, Must-Read Books, and More | The Tim Ferris Show

Intro

In this episode of “The Tim Ferris Show,” Tim Ferris interviews Morgan Housel, a writer and investor, to discuss contrarian money and writing advice, setting goals in life, journaling prompts, choosing the right game to play, must-read books, and more. They also touch on topics such as the impact of economic events on ordinary people, the core principles of stoicism, the challenges of wealth and philanthropy, and the importance of sustainable success. Join Tim and Morgan as they delve into these fascinating subjects and provide valuable insights.

Main Takeaways

Contrarian Money and Writing Advice

• Warren Buffett’s success lies in betting on things that stay the same forever.
• People are bad at predicting the future because they focus on what’s going to change.
• Good writing is easy, bad writing is hard.
• Only write a book if you have to do it.

Guiding Principles for Life

• Separating the things you can change from the things you cannot can reduce anxiety.
• The core of stoicism is separating what you can predict from what you cannot.
• Movement is critical to forming new thoughts and moving forward.

Wealth and Philanthropy

• Athletes go bankrupt not because of their own purchases, but because of their obligation to help family and friends.
• Social debt is the idea that when someone comes into money, they owe it to those who helped them before.
• Giving your children money when they need it in their 30s and 40s can be more beneficial than waiting until you die.

The Challenges of Wealth

• Wealthy parents may struggle with giving away money to philanthropic causes instead of protecting their nest egg.
• People treat you differently when they want something from you, which is not a good thing.
• Holding your child back can hinder their growth and development.

Planning for the Future

• It’s important to plan how much money to give to your children and when to give it to them.
• Money can make you happier if you are already happy, but it may not help if you are depressed.
• Timing and luck are also important factors in achieving success in certain areas.

Writing and Speaking

• Writing is harder than speaking for most people.
• People who try to be good at both writing and speaking may not excel at either.
• Listening to content is preferred by a larger audience than reading.

Books and Storytelling

• The Four Hour Work Week and Tools of Titans are the two best selling books by Tim Ferriss.
• Robert Caro is a thorough researcher who uncovers new information in his biographies.
• Tragic events like the Great Depression and the Triangle Fire have sparked innovation and progress.

Summary

Contrarian Money and Writing Advice

Morgan Housel shares insights on Warren Buffett’s success in betting on things that remain constant and the importance of focusing on human behavior that has never changed. He also emphasizes the value of good writing and the need to write a book only if it is a genuine passion. By separating what can be changed from what cannot, individuals can reduce anxiety and make better decisions.

Guiding Principles for Life

Housel explains the core principles of stoicism, which involve separating what can be predicted from what cannot and embracing movement to foster new thoughts and progress. These principles can help individuals navigate uncertain situations and make more informed choices.

Wealth and Philanthropy

Morgan Housel discusses the challenges of managing wealth, including the obligation to help family and friends and the concept of social debt. He explores the importance of giving money to children when they need it and the struggles wealthy parents face in balancing philanthropy with protecting their financial assets.

The Challenges of Wealth

Housel highlights the negative consequences of being treated differently due to wealth and the potential harm it can cause to individuals, especially children. He also explores the difficulties wealthy parents face in raising well-balanced children and making decisions about giving away money.

Planning for the Future

Morgan Housel emphasizes the importance of planning how much money to give to children and when to give it to them. He also discusses the impact of money on happiness, suggesting that it can enhance contentment but may not alleviate depression. Additionally, he acknowledges the role of timing and luck in achieving success.

Writing and Speaking

Housel shares insights on the challenges of writing compared to speaking and the preference of a larger audience for listening to content rather than reading. He encourages individuals to focus on their strengths and not try to excel in both areas.

Books and Storytelling

Morgan Housel highlights the best-selling books by Tim Ferriss and discusses the work of writers like Robert Caro, who uncover new information and offer unique perspectives. He also explores how tragic events can ignite progress and innovation, leading to positive changes in society.

Conclusion

This episode of “The Tim Ferriss Show” provides valuable insights into contrarian money and writing advice, guiding principles for life, the challenges of wealth and philanthropy, planning for the future, the art of writing and speaking, and the impact of books and storytelling. Morgan Housel’s wisdom and Tim Ferriss’ engaging interview style make this a must-listen episode for those seeking valuable insights and inspiration.