Being financially unbreakable is more important than big returns

Summary

• Being financially unbreakable is more important than big returns

Details

• If you suffer a financial reverse then you cannot get the benefits of compounding. So its more important to be secure than to seek huge returns.

References

• Same as Ever - A guide to what never changes - Morgan Housel

Quotes

Same in investing. I wrote in my book The Psychology of Money: “More than I want big returns, I want to be financially unbreakable. And if I’m unbreakable I actually think I’ll get the biggest returns, because I’ll be able to stick around long enough for compounding to work wonders.”

Related

• Financial independence is having enough
• Stop worrying about what other people think of your finances
• Invest in preparedness, not in prediction - Nassim Taleb
• Never invest your money in anything that eats or needs repainting – Billy Rose