chapter 1 No One's Crazy
People do some crazy things with money. But no one is crazy.
One's experiences with money make up maybe 0.00000001% of what's happened in the world, but maybe 80% of how one think the world works.
The challenge for us in that no amount of studying or oopoen-mindness can genuinely recreate the power kof fear and uncertainty.
Studying history makes you feel like you understand something. But until you've lived through it and personally felt its consequences, you may not understand it enough to change your behavior.
We all think we know how the world works. But we've all only experienced a tiny sliver of it. Some lessons have to be experienced before they can understood. We are all victims, in different ways, to that truth.
In theory people should make investment decisions based on theor goals and the characteristics of the investment opetions available to them at the time. But the economists found that people's lifetime investment decisions are heavily anchored to the experiences those thet have in their own generation--- wspecially experiences early in their adult life.
The differences in how people have experienced money are not small, even among those you might think are pretty similar.
Every decision people make with money is justified by taking the information they have at the moment and plugging it into their unique mental model of how the world works.
Money has been around a long time. But the modern foundation of money decisions( saving and investing) is based around concepts that are practically infants. 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.
chapter 4 Confounding Compounding
Lessons from one field can often teach us something important about unrelated fields.
楔子
直到十九世纪，科学家们仍在为冰河时代的降临与消逝争论不休。导致冰层形成与融化的能量将是这个星球最强大的能量。Wladimir Köppen发现罪魁祸首不是凛冽的寒冬，而是凉爽的夏天。夏天没有足够多温度是上一年的结冰完全融化，留下的冰使得雪更容易留住。下一年留下了更多的冰。常年积雪反射了太阳光，加剧了降温。几百年后形成了冰川。相反的事情也在发生：地球倾斜的轨道接受了更多太阳光，冰层渐渐融化，反射了更少阳光，温度上升，冰块慢慢消融。