No one is crazy: Everyone has different needs at different times. Risk/reward. Cash flow/capital creation.
Luck and Risk: ex. Bill Gates is a one in a million with computer. His classmate was a one in a million with an avalanche death.
Never Enough: Get the goalposts to stop moving never risk reputation freedom, peace of mind.
Compounding: $81B of Buffet’s $84B came after his 65th bday. Earn a pretty good return that you can stick with.
Getting Wealthy vs. Staying Wealthy: Don’t get wiped out.
Tails, You Win: Can have many losses as long as you have big wins. A few things account for most results in investing and life.
Freedom: Controlling your time is the highest dividend money pays.
Man in The Car Paradox: No one is impressed with your possessions as much as you are.
Wealth is What You Don’t See: “stuff” is the liquidation of wealth.
Save Money: Savings rate plays a big role in building wealth. The value of wealth is relative to what you need. Wealth gives you flexibility and patience.
Reasonable > Rational: A reasonable strategy can be stuck to.
Surprise!: Things that have never happened before happen all the time. Surprises change the direction of the world.
Room for Error: Plan on your plan not going according to plan. Have a margin of safety, including emotional impact.
You’ll Change: Your needs/desires change with time.
Nothing is Free: Financial and non-financial taxes; volatility is a fee.
You and Me: We are playing different financial games. Day trader vs. long term investor.
Disclaimer: These are notes I created from reading the book. This is not completely comprehensive and may include errors and typos. No guarantee is provided as to the accuracy of the information. It is provided for educational purposes only.