Starting a thread on Investor Psychology as I’m keen to get perspectives from Straw people on this.
I agree strongly with Morgan Housel when he wrote “money relies more on psychology than finance” and “how you behave is more important than what you know” in his recent book “The Psychology of Money”, which was based on this blog - https://www.collaborativefund.com/blog/the-psychology-of-money/
This idea that psychology is more important than numbers for investing makes a lot of sense to me.
Further, self-knowledge is critical to picking a strategy you can stick to through good times and bad.
It was Socrates who implored us to “know thyself” and Buffett who expanded on this for investors when he said “To invest successfully, one doesn’t need a stratospheric IQ... What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework”
Some twitter wisdom also makes this point well - https://twitter.com/iancassel/status/1423798100003590146
I got the idea for this post from one of my favourite authors talking about how Stoic Philosophy can guide better investment decision making. It’s a very worthwhile discussion in 45 mins https://chrisdunn.com/ryan-holiday-interview/
Keen to hear any agreeing and dissenting views on this from the community.
Also any sources you can point to that expand on / refute this idea?