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The 2nd lesson resonates with me a lot. Particularly the bit about being a pessimistic saver and an optimistic investor. I'm 34. It's dawning on me that I have

The 2nd lesson resonates with me a lot. Particularly the bit about being a pessimistic saver and an optimistic investor. I'm 34. It's dawning on me that I have been a pessimist all of my life. I have saved and saved, cut expenses here, minimized consumption there. I have known a bit of poverty in my earlier days and while my minimalism may reflect an on-going poverty, I have done ok for myself by two metrics: I own a home and I never let a price tag prevent me from buying what I want at the grocery store. These metrics are paramount to me. If I cannot guarantee them for myself, I am poor. If I can, I am financially unbreakable. It's my own, very humble version of 'fuck you' money. It has served me alright but not on the flip-side as the article mentions. I am constantly concerned about the next crash and the future seems bleak whether it's climate change, decreasing class mobility, the return of feudalism, or simply the ugliness of an overly complex tech-driven world. In my life, I have only known an irrationally exuberant market and even as I try to overcome my pessimism, it's difficult to tell whether it's not all at all-time-highs. I am loathe to embarrass myself by investing right as everything is about to come down. Now, I am trying to figure out the the right diversification and dollar-cost averaging strategy for myself. (Yes, I should have invested in March. I've made some profits since then but I would've liked to be more deeply invested rather than take profits from quick trades.) Like everyone else, my friends/associates/colleagues are potential business partners in that we have the same interests, expertise, and drives. I have noticed that the successful ones are usually the optimists. Surely all enterprising begins with hope. But obviously, like any pessimist, I see myself as a realist, and I am sincere and frank in my discussions with others, but at what cost? It's realistic to acknowledge that pessimism drives away opportunity, so I must become an optimist. But how?

michaelbrave 6y ago
I think part of the optimism (in investing) is finding the opportunity in the bad. For example the best time to buy is after a crash kind of thinking. Also I would argue that most of us are more optimistic than we think, why else would we buy workout equipment or get gym memberships over and over when our past history would prove pretty solidly that what we think will happen likely won't. It's because we are secretly optimistic that it can/will happen this time. Granted this isn't true for everyone but the point that we are more optimistic than we think is in broad strokes true.
throwaway98797 6y ago
I hear you. Once you change your beliefs about what is required to achieve something. It’s not cold hard “facts”, but belief. You must believe to see. Not see to believe. I stole this from a devote religious man and it has helped me greatly to take more risks and thus become more optimistic. (I’m not religious)

michaelbrave 6y ago

I think part of the optimism (in investing) is finding the opportunity in the bad. For example the best time to buy is after a crash kind of thinking. Also I would argue that most of us are more optimistic than we think, why else would we buy workout equipment or get gym memberships over and over when our past history would prove pretty solidly that what we think will happen likely won't. It's because we are secretly optimistic that it can/will happen this time. Granted this isn't true for everyone but the point that we are more optimistic than we think is in broad strokes true.

throwaway98797 6y ago

I hear you. Once you change your beliefs about what is required to achieve something. It’s not cold hard “facts”, but belief. You must believe to see. Not see to believe. I stole this from a devote religious man and it has helped me greatly to take more risks and thus become more optimistic. (I’m not religious)