Page 30 - Psychology of Money - Timeless Lessons on Wealth, Greed, and Happiness-Harriman House Limited (2020)

Same for index funds, which are less than 50 years old. And hedge funds,
which didn’t take off until the last 25 years. Even widespread use of
COBACOBA
consumer debt—mortgages, credit cards, and car loans—did not take off
until after World War II, when the GI Bill made it easier for millions of

Americans to borrow.

Dogs were domesticated 10,000 years ago and still retain some behaviors of
their wild ancestors. Yet here we are, with between 20 and 50 years of
experience in the modern financial system, hoping to be perfectly
acclimated.

For a topic that is so influenced by emotion versus fact, this is a problem.
And it helps explain why we don’t always do what we’re supposed to with
money.

We all do crazy stuff with money, because we’re all relatively new to this
game and what looks crazy to you might make sense to me. But no one is
crazy—we all make decisions based on our own unique experiences that

seem to make sense to us in a given moment.

Now let me tell you a story about how Bill Gates got rich.