Young and Profiting (YAP) with Hala Taha
Morgan Housel: How Smart Entrepreneurs and Investors Grow Wealth on Autopilot | Finance | E336
Mon, 10 Feb 2025
Morgan Housel once looked back at his twenties as a carefree, simple time, living in a beautiful apartment with his wife. But she quickly reminded him how anxious he truly was. His nostalgia had erased the uncertainty he once felt, just like how investors look back at past market growth and assume success was inevitable. In this episode, Morgan explains why the past is never as clear as we remember and why the future won’t be either. He also shares how entrepreneurs can build wealth despite uncertainty, the key to long-term success in the stock market, and practical strategies for sustainable financial planning. In this episode, Hala and Morgan will discuss: (00:00) Introduction (02:14) Why Most Financial Resolutions Fail (04:06) Balancing Saving and Spending Habits (09:15) The Power of Long-Term Investing (13:30) Navigating Startup Risks Wisely (15:49) What Sets Genius Entrepreneurs Apart (18:50) Why Doubt Is Necessary for Entrepreneurs (22:23) How Hindsight Can Misguide Investors (29:22) Wealth Inequality in the Social Media Era (34:36) Turning Anxiety About the Future into Action (40:23) The Financial Mistakes We Keep Repeating (48:38) Elon Musk’s Extreme Risk-Taking Strategy (50:42) Embracing Failure for Lasting Success (53:55) How Rumors Shape Financial Markets Morgan Housel is an investor, partner at The Collaborative Fund, and author of the New York Times bestsellers The Psychology of Money and Same As Ever. A former columnist for The Motley Fool and The Wall Street Journal, he simplifies complex financial ideas, emphasizing long-term thinking, compounding, and decision-making over market predictions. He is also a two-time Best in Business Award winner from the Society of American Business Editors and Writers. Connect with Morgan: Website: morganhousel.com Linkedin: linkedin.com/in/morgan-housel-5b473821 Instagram: instagram.com/morganhousel Twitter: x.com/morganhousel Facebook: facebook.com/morgan.housel.5 Sponsored By: Shopify - Sign up for a one-dollar-per-month trial period at youngandprofiting.co/shopify Airbnb - Your home might be worth more than you think. Find out how much at airbnb.com/host Rocket Money - Cancel your unwanted subscriptions and reach your financial goals faster with Rocket Money. Go to rocketmoney.com/profiting Indeed - Get a $75 job credit at indeed.com/profiting RobinHood - Receive your 3% boost on annual IRA contributions, sign up at robinhood.com/gold Factor - Get 50% off your first box plus free shipping when you use code FACTORPODCAST at factormeals.com/profiting50off Active Deals - youngandprofiting.com/deals Resources Mentioned: Morgan Housel: How to ACTUALLY Build Wealth, Investing to Gain Financial Independence | E266: youngandprofiting.co/4147SpO Morgan’s Book, The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness: amzn.to/3EoljZ0 Morgan’s Book, Same as Ever: A Guide to What Never Changes: amzn.to/4aOX7uV Morgan’s Podcast, The Morgan Housel Podcast: bit.ly/3EljBre Key YAP Links Reviews - ratethispodcast.com/yap Youtube - youtube.com/c/YoungandProfiting LinkedIn - linkedin.com/in/htaha/ Instagram - instagram.com/yapwithhala/ Social + Podcast Services: yapmedia.com Transcripts - youngandprofiting.com/episodes-new All Show Keywords: Entrepreneurship, entrepreneurship podcast, Business, Business podcast, Self Improvement, Self-Improvement, Personal development, Starting a business, Strategy, Investing, Sales, Selling, Psychology, Productivity, Entrepreneurs, AI, Artificial Intelligence, Technology, Marketing, Negotiation, Money, Finance, Side hustle, Startup, mental health, Career, Leadership, Mindset, Health, Growth mindset. Finance, Financial, Personal Finance, Wealth, Stock Market, Scalability, Investment, Financial Freedom, Risk Management, Financial Planning, Business Coaching, Finance Podcast, Investing, Saving.
Chapter 1: Why do most financial resolutions fail?
How can we actually plan out what we want to spend our money on this year?
Chapter 2: How can we balance saving and spending habits?
If you can earn average returns for an above average period of time, you will be among the top investors in the world. Most people are overconfident in what they can do. You have to have this split personality of I'm so good at what I do and I'm a complete idiot who has no idea what I'm doing. Bullshit is easier to create than it is to refute. So meme coins are an example of this.
Chapter 3: What is the power of long-term investing?
Someone creates a meme coin and you're like, that's obviously bullshit. And it becomes Dogecoin.
Chapter 4: How can entrepreneurs navigate startup risks wisely?
So how can we use this information when we're making investors and financial decisions?
Chapter 5: What sets genius entrepreneurs apart?
I think
Chapter 6: Why is doubt necessary for entrepreneurs?
Yeah, bam. My guest today is back for his second visit to the show. You may know him as the author of books like The Psychology of Money and Same As Ever, or as the host of the Morgan Housel podcast. I'm, of course, talking about Morgan Housel. Morgan is also a partner at the Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal.
Chapter 7: How can hindsight misguide investors?
I spoke to Morgan about a year ago in episode 266, and we talked about all kinds of juicy things from why finance is actually more like psychology to physics and what Bill Gates can teach you about optimism. We'll be running that episode again as a Yap Classic in the near future, and I encourage you to check it out.
Chapter 8: What insights can we gain about wealth inequality in the social media era?
Today, we are going to pick Morgan's brain on a number of interesting topics related to psychology, money, investing, and how you can avoid some of the biggest mental blunders when it comes to your financial decisions. Morgan, welcome back to Young and Profiting Podcast.
Thanks so much for having me. Happy to be back.
Yeah, I'm happy to have you here. So you were on the show about a year ago, and we had such an interesting discussion. We talked about all kinds of things, your background, the secrets to building wealth and staying rich, and some topics you discuss in your books. And since then, you've been busy writing, recording podcasts, creating content.
So I thought today we could kick off the new year with a grab bag of things that you're thinking about now related to money, investing, and psychology.
Let's do it. I'm ready.
Okay, cool. So speaking of the new year, what do you think the top things are that we should do to kick off the new year right when it comes to our finances? Is there any sort of exercise that we should be doing in the beginning of the year to evaluate our strategy?
I think there's a couple of things to keep in mind. One is the very well-known idea that has been tracked for many years that New Year's resolutions don't tend to hold up. Because if you need to do something new on January 1st that you were unwilling to do on December 31st, you're almost certainly not going to stick with it.
So there's this idea, I think it was brought up by Scott Adams, who is the guy who created the Dilbert comic. You should have systems instead of goals. One example of that is a goal is I'm going to lose 10 pounds. That's a goal. A system is I'm going to work out every day. That's a system. It's very different from a goal.
It's a much better and more efficient way to have a new habit to do something. So I think if you do have an aspiration to have a New Year's resolution, do it right now in December and come up with a system that you can actually stick with over the long run. And a system means that it probably should not be extreme.
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