10 Years of Money Wisdom in 51 Minutes | Morgan Housel

Today, we're talking about money with the guy who's been studying money for, like, the last ten years. He's the author who sold more books about money than pretty much anyone on Earth. It's Morgan Housel. He wrote the Psychology of Money, The Same as Ever, The Art of Spending Money. And we talked to him about Warren Buffett, about the behaviors that drive people to either make money or lose a bunch of money, about spending money, about how much money is enough. It's just a good, honest conversation between a bunch of dudes about money. What more do you want? Morgan, you tweeted out something that broke my brain. In fact, I thought it was like an AI deep fake. It's like when Luca got traded and people were like, you know, this is must be fake news. There's no way this is possible. You said that my favorite Buffett stat is that Berkshire Hathaway could lose 99% of its value tomorrow and still have outperformed the S and P 500 since Buffett took over. And the and the the truth is I was understating it. It's actually, like, 99.6% or something like that that it could decline. That is so how is it even possible? Like, you know, we don't do public math here, but that sounds mathematically impossible. And and he only outperformed by seven points. Right? It was like or it like, he's done, like, 20% annual versus It's it's about that. His was about 20, and I think the the S and P nominal with dividends is probably like 11 or 12. So maybe it's eight or 9% outperformance, but he did that outperformance over sixty years. And so the cumulative performance, I'm pretty sure I'm saying this off the top of my head. If I if I'm getting this a little bit wrong, I'm sorry. But I think the S and P 500 is 35000% since Buffett took over, and Berkshire's return was five and a half million percent. And so even if it's only, quote, unquote, only 9% per year over six per year, Over sixty years, it just gets Incredible. Insane. Preposterous. And, you know, Buffett's current net worth is, I think, 130,000,000,000, but he's given so much away to charity that if you count that in, it's something like 500,000,000,000. That if you hadn't given money away to charity, he'd be worth 500,000,000,000. He'd be the richest man alive by far. And he started with $10,000. And I mean and and turned it into half 1,000,000,000,000. And so that's but I think the biggest lesson here, and this is the most important for ordinary people, is that, like, look. You can't pick stocks like Buffett. You can't analyze businesses like Buffett. He's smarter than you, and he operated in a different era than all of us. So don't try to emulate that. What you can emulate, especially for young people, of course, is the most important and powerful thing that …