What Always Changes
Aug 5, 2020 by Morgan Housel
A few things that always change, never staying in one place for long:
1. The information and metrics people pay attention to always change. So even if you know what’s going to happen, you don’t know whether other people will care.
James Grant says successful investing is about “getting everyone else to agree with you … later.”
Merely predicting what’s going to happen next isn’t enough. To be right you have to predict what’s going to happen next and get millions of other investors to agree that what happened is worth paying attention to in a way that draws their interest and dollars to an investment. And the things other people pay attention to – the information and metrics that grab our attention – are always changing.
Book value is what investors paid most attention to during the early 20th century. Ben Graham mentions it twice as often as the phrase “net income” in his classic book The Intelligent Investor. Then it kind of faded away. Profits became the metric of choice for most of the late 20th century. At other times dividends were the prized metric. In the late 1990s it was page views. In the mid-2000s, user growth.
If Uber was a company in 1985, when investors obsessed over free cash flow, it would be considered a joke. But since it exists in the 2010s, when investors mostly care about revenue growth and brush aside profitability, it became a darling.
Investment facts are always changing. But prediction is doubly hard because the facts investors care about and pay attention to – which is what makes facts relevant – change all the time. Not just by industry, but for the market as a whole. They change by economic condition, generation, and when a compelling story about a new metric finds its way into enough people’s heads.
The same is true in business, politics, and relationships.
Rarely can you say, “When this happens, that occurs,” because that occurring relies on other people thinking this matters, when their attention may have drifted off to something else.
To continue reading, please go to the original article here:
https://www.collaborativefund.com/blog/what-always-changes/
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On Sunday night, Brazil re-elected its left-wing president, Lula da Silva. On Monday morning the São Paulo stock market fell so hard at the open that the exchange halted trading for the first time since the pandemic. When trading resumed, Brazil’s stock market kept falling.
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Financial success or failure is often the result of attitudes — both conscious and unconscious — that affect our behavior. No amount of budgeting and self-control can help us when we’re up against ingrained ideas about money management, spending, and debt. If you’re having a tough time shifting your financial behavior, maybe it’s time to change your mind about money. Here are six common attitudes that work against us financially.
Plan B Options for folks on Social Security
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In the early morning hours of February 7, 1937, a young American named Stirling Dickinson got off a train in central Mexico and rode into San Miguel de Allende on a mule-drawn cart.
He and a Princeton classmate were months into a trip around Mexico looking for a quiet place to write, and a Mexican opera singer had told them to try San Miguel.
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On March 6, 2016, Malaysia’s prime minister, Najib Razak, turned up for the grand opening of a city that did not exist yet, two kilometers off the coast from Singapore.
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You’re about to score a financial touchdown. Maybe you’ve crushed it at work and landed a sweet promotion. Perhaps you’ve won a lottery or stumbled into a side hustle that suddenly pays off. As you near the end zone, heart pounding, head full of dreams, you can’t afford (literally) to fumble. Whether you’re blindsided by unexpected taxes or tripped up by bad financial advice, you have a lot to lose if you drop the ball.
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Have you ever settled on a new exercise program, only to get a bad cold a few days in and happily throw yourself on the couch, relieved to have a handy excuse? Excuses must be human nature; I know I usually make them when I'm facing something that’s new, that's hard, or that I just don’t enjoy. And I’ve certainly made excuses when it comes to money.
In the years that I’ve been writing about personal finance and investing, I’ve also heard my fair share of excuses, mostly from readers who don’t agree with my advice. The problem is, unlike good financial habits, excuses are easy to come by, even though most of them just don’t stand up to reason. Check out some of the ones I’ve heard most frequently so far.
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Cash bucketing – or categorizing your funds based on specific expenses or goals – can help you organize your financial life.
Cash and other liquid assets may be the ideal place for buckets of money that you may need to access soon to cover expenses or capitalize on new investment opportunities.
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With interest rates rising again, savers will want to take certain steps now to take advantage.
Savers on Thursday woke up to a new financial climate marked by the first interest rate hike from the Federal Reserve in more than three years. Now at a range between 3.75% and 4.00%, a new, higher federal funds rate is expected to lead to even higher rates for savers than they've already been accustomed to in recent years. And while that change will look different based on the account type and the bank in question, savers are undoubtedly now entering a more profitable period, especially if the Fed proceeds with another interest rate hike when it meets again in October.
5 Steps To Master Your Money
Simple strategies to help fund your future.
Fidelity Viewpoints
Key takeaways
Define clear goals and make a plan to help guide your financial decisions.
Set up automatic transfers to help boost your savings and keep you on track.
Build up your emergency savings to cover unexpected essential expenses
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12 Key Habits for Achieving Financial Freedom
Set yourself on the path to saving with these habits
By Matt Danielsson Updated March 06, 2026
Key Takeaways
Set financial goals and create a plan to achieve them.
Make and stick to a budget covering all financial needs.
Pay off credit cards monthly and minimize debt.
Automate savings with an emergency fund and retirement contributions.
U.S. consumers can request a free annual credit report from major agencies.
The Seven Deadly Sins Of Personal Finance
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I've been reading and writing about personal finance for more than thirteen years. In that time, I've consumed a lot of books about money. Lately, I've found that it's fun to revisit old favorites.
Recently, for instance, I've been re-reading Brett Wilder's The Quiet Millionaire [my review]. It's different than most personal finance books. It's targeted at those who are farther along their financial journeys rather than at those just starting out. Still, there are bits and pieces in The Quiet Millionaire that are applicable to everyone.
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Everyone loves a success story, and the world is filled with them. But what about stories of failure? Can't they be as just as educational? Just as inspirational? Equally insightful?
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