How I Invest My Money Book Summary - How I Invest My Money Book explained in key points
Listen to the Intro

How I Invest My Money summary

Edited by Joshua Brown and Brian Portnoy

Finance Experts Reveal How They Save, Spend, and Invest

4.1 (198 ratings)
20 mins
Table of Contents

    How I Invest My Money
    summarized in 6 key ideas

    Audio & text in the Blinkist app
    Key idea 1 of 6

    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.

    Want to see all full key ideas from How I Invest My Money?

    Key ideas in How I Invest My Money

    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    What is How I Invest My Money about?

    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.

    Best quote from How I Invest My Money

    I believe being willing to stick to a diversified portfolio of index funds is the closest thing to an investing superpower that exists.

    —Edited by Joshua Brown and Brian Portnoy
    example alt text

    Who should read How I Invest My Money?

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

    About the Author

    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.

    Categories with How I Invest My Money

    Books like How I Invest My Money

    People ❤️ Blinkist
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    People also liked

    Start growing with Blinkist now
    26 Million
    Downloads on all platforms
    4.7 Stars
    Average ratings on iOS and Google Play
    Of Blinkist members create a better reading habit*
    *Based on survey data from Blinkist customers
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 5,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Start your free trial