The Geometry of Wealth

works not by making valid predictions but by allowing me to correct false ones.” Truly skilled investors value flexibility, adaptability, and the ability to withstand losses in order to fight the next day.

Wealth, truly defined, is only achievable in the context of a life in which purpose and practice are thoughtfully calibrated. In isolation, neither deep thoughts nor long checklists is up to the task. To succeed, clear minds and dirty hands must work together.

In a fascinating study, a group of prominent researchers measured the personalities, values, and preferences of 19,000 people ranging in age from 18 to 68. They found a wide gap between the expected and reported changes in those qualities. We look backward over our lives differently than we look forward. The researchers discovered that people are e

People who have more money are not necessarily happier—though some are. If anything, money alleviates sadness more than it inspires joy. In day-to-day living, beyond a modest income, more money doesn’t help. But research reveals that those who live with purpose and embrace the adaptive self tend to be more content. In that case, money—when spent wi

Hopefully the matching protocol sounds reasonable, but it’s important to recall that very few actually do this. It also stands in opposition to the favorite pastime for too many investors and financial advisors: beating the market. That’s a silly and fruitless game. It’s not tied to our real needs, it’s attached to our ego.

Nearly 40% of American workers have not saved for retirement. Let me repeat: Tens of millions of Americans do not have a dime saved for retirement. Slightly more than half of workers are currently saving for retirement, but most of them haven’t saved much: 24% have saved less than $1,000, 47% have less than $25,000 socked away, and 65% have less th

Taking more risk does not produce greater returns. Instead, taking more risk increases the variability of future outcomes. That’s not great bumper sticker material. Nevertheless, if there were a reliable relationship between more risk and bigger rewards, then technically you wouldn’t be taking more risk. Everyone would bet long shots all the time.

we engage with more and more information, but research suggests that the more information we gather, the worse choices we make.46 Further, the more information we gather, the more compelled we feel to make decisions. We don’t like to harvest new information but then do nothing with it. It feels like wasted effort. Finally, too much deliberation hin

Simplification is the smart path toward effectively managing expectations. In general terms, met expectations lead to temporary happiness and unmet ones lead to temporary sadness. The human mind is wired to avoid losses more than it is to achieve gains, so minimizing regret is more important in this process than is maximizing future upside.