The incredibly bright and insightful Morgan Housel of the Collaborative Fund drops by the Compound to discuss some of the biggest mistakes and misconceptions that plague investors year after year – and what can be done about them.

Morgan talks with Michael Batnick and Barry Ritholtz about:

* how there is no such thing as an optimized portfolio

* why recent trends are more instructive about the near term future, but long term trends are the ally of most investors

* the fact that investing is one of the only endeavors in which the application of more effort doesn’t equate to better results

* the hindsight bias that all of us fall victim to

* the reality behind some of the most famous investor track records

* the inconsistency you are required to put up with in the pursuit of long term outperformance

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30 replies
  1. I, Roboticus
    I, Roboticus says:

    Love this discussion with Housel. I agree that a lot of investment quandries only have personal solutions, that's a great insight. As for the Dalbar studies, I really have no faith in their conclusions. The behavior gap exists, but sizing it is another story.

  2. Zero11
    Zero11 says:

    Some of my Best buys are "yolo" buys i made when i first started buying stocks a few years back. I bought $AMAT at $15 just cuz i played a stock market game with my cousin and it was the first stock i ran across a year or two before that.

  3. sommi
    sommi says:

    🧡💛💚💙 Deceiving video. If you spent 20 hours a week researching under valued companies You WILL find great Gems to buy and you will get 10-30% per year better than the market (Investing in sums of money less than $5 million USD).

    If you work very hard at this you will get the benefits. Theres no way you can actually spend 20-30 hrs a week and educate yourself on value investing and all this stuff and get blown apart.

    However, many people break the rules and gamble anyway 🧡💛💚💙

  4. Jonathan Johnson
    Jonathan Johnson says:

    The Compound is great but I kind of question the target audience. The idea of bringing Wall Street to Main Street seemed to be the general undertone which is awesome but I don't agree with some of the topics. My guess is you have a ton of older millennials following you and they are exposed to all the current market risk. Imagine not owning a home and you haven't lost money on any transactions in the past 10 plus years. Investing in the total market exposes your base to a ton of risk right now since they haven't been able to afford housing based off the wage stagnation and the feds weird game.

  5. Kal
    Kal says:

    I had a bankroll and told myself I needed to make $X or Y% as a daily average return to "make a living."
    Then I drove myself into a mental breakdown attempting to produce those returns, either through programming algorithms or trading by hand.

    Had I simple purchased an index fund on day 1, I'd have realized a 400% return by the time I was in tears over all the years I had thrown at it, trying to be clever.

  6. aleksi cherednik
    aleksi cherednik says:

    I strongly believe Bitcoin to be a long-term store of value, especially as traditional markets continue to show weaknesses. History shows us that BTC is prone to huge drops between 30% and 40% during bull seasons. Therefore, I don’t advise that you fight the trend, but surf it for as long as possible. It's a known fact that investors have been waiting for major drops to make new entries so Moments like these are highly welcomed and appreciated because it provides opportunity for day traders to accumulate massive income and grow their portfolio. Hodling bitcoin is good for long term but day trading is the way forward to prosperity. and it's less risky when you trade with a reliable strategy. I personally earn 6.5 BTC to 8 BTC monthly simply by using Billy Thompson strategy. a strategy that has been recommended several by veteran traders in the crypto space. I will advise every bitcoin trader both beginner and experts to try out his strategy because it's highly profitable regardless of the market condition. Mr billy is a Licensed crypto expert so you don't have to worry about the current value of bitcoin when you trade with his signals. You can reach Billy on (WHATSAPP:+18326502023) or (Telegram- Billythompsoninc) for better trading experience.

  7. Venny hardin m
    Venny hardin m says:

    It might sound bizarre, but I actually have generated over $680,000 in net profits over a 4 month trading period from a capital of $215,000, all from the financial markets. Of course making money in the stock market is an uphill task, but there are a lot of ways to work your around that.

  8. Islam Mohamed
    Islam Mohamed says:

    Impressed with the discussion about unconscious bias. I am so guilty of overstudying companies I just want to stick with, and sinking more and more intellectual and actual capital into my decision, making it harder to withdraw when things go sideways. The Market Doesn't Care, and I shouldn't be so personally invested in a decision that it makes me irrational.

    This is the stuff that won behavioural psychologist Daniel Kahneman a Nobel Prize in economics. I need to re-read Thinking Fast And Slow!


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