Get the key ideas from

How I Invest My Money

Finance Experts Reveal How They Save, Spend, and Invest

By Edited by Joshua Brown and Brian Portnoy
12-minute read
Audio available
How I Invest My Money by Edited by Joshua Brown and Brian Portnoy

How I Invest My Money (2020) isn’t about the right way of planning your financial future. Instead, it offers a rare insight into what financial industry insiders do with their own money. So how do the pros play the market? Well, it turns out there’s no single answer to that question. How people invest depends on who they are and what kind of values and goals they have.

  • Savers looking to invest their nest eggs
  • Would-be retirees
  • Financial greenhorns

Josh Brown is the co-founder and CEO of Ritholtz Wealth Management, a financial services firm that manages over $1 billion in assets for a range of individual, corporate, and institutional clients. He’s the author of Backstage Wall Street and Clash of the Financial Pundits.

Brian Portnoy is the mind behind Shaping Wealth, a financial wellness platform that aims to help clients make better financial decisions. His previous books include The Investor’s Paradox and The Geometry of Wealth.

Go Premium and get the best of Blinkist

Upgrade to Premium now and get unlimited access to the Blinkist library. Read or listen to key insights from the world’s best nonfiction.

Upgrade to Premium

What is Blinkist?

The Blinkist app gives you the key ideas from a bestselling nonfiction book in just 15 minutes. Available in bitesize text and audio, the app makes it easier than ever to find time to read.

Discover
4,500+ top
nonfiction titles

Get unlimited access to the most important ideas in business, investing, marketing, psychology, politics, and more. Stay ahead of the curve with recommended reading lists curated by experts.

Join Blinkist to get the key ideas from
Get the key ideas from
Get the key ideas from

How I Invest My Money

Finance Experts Reveal How They Save, Spend, and Invest

By Edited by Joshua Brown and Brian Portnoy
  • Read in 12 minutes
  • Audio & text available
  • Contains 7 key ideas
Upgrade to Premium Read or listen now
How I Invest My Money by Edited by Joshua Brown and Brian Portnoy
Synopsis

How I Invest My Money (2020) isn’t about the right way of planning your financial future. Instead, it offers a rare insight into what financial industry insiders do with their own money. So how do the pros play the market? Well, it turns out there’s no single answer to that question. How people invest depends on who they are and what kind of values and goals they have.

Key idea 1 of 7

There are no universal truths when it comes to investing.

Sandy Gottesman is a billionaire who founded the New York-based investment firm called First Manhattan. He always asks interviewees hoping to join his team the same question. He doesn’t quiz them about the best stocks to buy right now or which economy is heading into a recession, though – what he wants to know is what candidates own, and why.

What, in other words, do they do with their own money? Financial writer Morgan Housel, the first investor we’ll be looking at in these blinks, loves this question because it underscores how personal money is. How you spend or save your money says something about who you are.

The key message in this blink is: There are no universal truths when it comes to investing.

According to the financial services firm Morningstar, just half of all mutual fund portfolio managers in the US invest in their own funds. At first sight, that might look like hypocrisy. If those funds were so great, wouldn’t the people managing them put their money where their mouths are and invest in them too? Not necessarily.

We can see why by turning to an article titled “How Doctors Die” published in 2011 by the American professor of medicine Ken Murray.

Murray shows that doctors diagnosed with terminal illnesses typically choose much more minimal end-of-life treatments than they prescribe for patients in the same position. Why? Well, their patients aren’t medical experts. Unlike doctors, they may not fully understand their situation; some may even continue to hope for a miraculous recovery. In short, they want more treatment.

Doctors and non-doctors, it turns out, have different needs in identical situations, which is why they get different treatments.

That just goes to show that it’s not always a bad thing when someone tells you to do something they don’t intend to do themselves. Financial experts are like doctors in this respect. Their job is to help you meet your needs – not to hand out universal prescriptions that also meet their needs.

So, what you do with your money depends on what you want to achieve. Housel and his wife, for example, value nothing more than independence, and that shapes their financial decisions.

Despite enjoying rising incomes for over a decade, they’ve kept their lifestyle pegged at the same level it was at when they married. Every cent of every raise since then has gone into an independence fund – a financial buffer which will allow them to do what they want on their own terms later on in life.

Upgrade to continue Read or listen now

Key ideas in this title

Upgrade to continue Read or listen now

Learn more, live more

Sign up now to learn and grow every day with the key ideas from top nonfiction and podcasts in 15 minutes.
Created with Sketch.