The Laws of Wealth: Psychology and the Secret to Investing Success
by Daniel Crosby
Psychologist Daniel Crosby works in the field of behavioral finance. “Given that you, as a member of the human family, have tendencies toward impatience, arrogance and a fetish for complexity, it is very likely that you will screw this up… At my last count, psychologists and economists had documented 117 biases capable of obscuring lucid financial decision-making.”
Crosby presents 10 rules of behavioral self-management.
Rule #1 – You Control What Matters Most. “The behavior gap measures the loss that the average investor incurs as a result of emotional responses to market conditions.” As an example, the author notes that the best performing mutual fund during the period 2000-2010 was CGM Focus, with an 18.2% annualized return; however the average investor in the fund had a negative return! The reason is that they tended to buy when the fund was soaring and sell in a panic when the price dipped. More on volatility later… Continue reading
You’re Not That Great
by Daniel Crosby
Psychologist Daniel Crosby tells it like it is in this book about the numerous ways human nature can work against us, not the least of which is egoistic self-absorption (solipsism).
“The biggest finding to emerge from the self-esteem movement was that praise did not predict self-esteem, accomplishment did… Many of the theories about self-esteem that had impacted policy were simply junk science.” Continue reading
The Art of Seeing: An Interpretation of the Aesthetic Encounter
by Mihaly Csikszentmihalyi and Rick E. Robinson
This book explores the enjoyment of viewing art within the framework of flow, the psychology of optimal experience. Flow is an intrinsically rewarding feeling of total involvement in an activity. To be fully engaged in a state of flow, one must be skilled and challenged. The author studied museum professionals as a proxy for the more general art viewing population.
“The experience is one of an initial perceptual hook followed by a more detached, intellectual appreciation that returns the viewer to the work with a deeper understanding.”
“The best examples of objects containing such challenges are works whose meaning appears to be inexhaustible.” As one respondent put it, “‘A good painting will never be used up.’”
Four dimensions of aesthetic experience are explored: cognitive, perceptual, emotional, and communicative.
by Kahlil Gibran
The Prophet offers wisdom on 26 topics—about three pages on each. Gibran writes in poetic prose with a liberal use of archaic words, presumably to sound biblical. Some of the meaning is immediately clear, while other parts require some reflection to decipher the deeper meaning.
On Work. The author stresses the importance of finding work you enjoy. “For if you bake bread with indifference, you bake a bitter bread that feeds but half man’s hunger. And if you grudge the crushing of the grapes, your grudge distils a poison in the wine.”
On Marriage. Gibran observes that marriage is a union between individuals, not a merger. “Let there be spaces in your togetherness, and let the winds of the heavens dance between you… The oak tree and the cypress grow not in each other’s shadow.” Continue reading
Congratulations, By the Way: Some Thoughts on Kindness
by George Saunders
This book is an expanded version of a commencement speech to the Syracuse University class of 2013.
“What I regret most in my life are failures of kindness.” Continue reading
People Tools: 54 Strategies for building relationships, creating joy, and embracing prosperity
by Alan C. Fox
Alan C. Fox writes with the tone of a grandfather sharing advice. Each “people tool” is described in a two to four page chapter, making it easy to read in small increments of spare time. Here is a sampling:
The Tao of Pooh
by Benjamin Hoff
The Tao of Pooh is about “how to stay happy and calm in all circumstances.” Benjamin Hoff uses the characters and stories from Winnie-the-Pooh and The House at Pooh Corner to explain basic concepts of Taoism. He also brilliantly integrates his own brief dialogue with the characters as segues into explanations of Taoist principles. Tao (pronounced DAO) means “the way.” Continue reading