What I have been reading - 11th March 2019

A selection of the interesting things I have read in the past week:

This is how much I know:  I am very familiar with Daniel Kahneman's work and have quoted it many times.  However, I have only just started reading his book 'Thinking, Fast and Slow'.  The way he thinks about the human mind will fascinate you.  This article is full of great nuggets.

Lighten the load:  Experiences make us happy.  But are you missing the other half of the happiness equation?  That's the focus on what doesn't make you happy.  A good, short article that will get you thinking.

Steven Pinker on the Past, Present and Future of Optimism:  I have talked at length in presentations about the dangers of pessimism and the decisions that flow from it.  This article is well worth reading.  "Remember your math: An anecdote is not a trend.  Remember your history: The fact that something is bad today doesn't mean it was better in the past.  Keep some perspective: Not every problem is a crisis.  Problems are inevitable but problems are solvable."  

Most investors should be Satisficers not Maximisers:  Investing is so counter-intuitive.  I feel like I say those words almost every day.  This article highlights just one of the many ways in which it is true.  "Maximisation is another of the many investment behaviours that 'feels' conceptually right - of course we should be seeking the best possible option - but has severely deleterious consequences."

AND FINALLY:

The downside of work-life balance:  With three young children and a rapidly growing business, this really resonated with me.  Thinking about your life in four quadrants - family, friends, health and work - is a powerful way to focus on your priorities.  No summary is going to do this article justice, so just read it.

ENJOY!

Georgie Loxton, CFA

georgie@libertywealth.ky