Daniel Kahneman: Owning Stocks

Posted by admin on Friday, July 2, 2021

Daniel Kahneman Money Quote saying long-term investing requires ignoring short-term losses or it can make you miserable. Daniel Kahneman said:
 

 

“If owning stocks is a long-term project for you, following their changes constantly is a very, very bad idea. It’s the worst possible thing you can do, because people are so sensitive to short-term losses. If you count your money every day, you’ll be miserable” — Daniel Kahneman

 

 

In this quote, Nobel Prize-winning psychologist Daniel Kahneman is offering advice on investing in stocks for the long run. He suggests that if owning stocks is a long-term goal, constantly checking their fluctuating prices in the short term will only cause misery, as people tend to fixate on and be overly sensitive to temporary losses.

Kahneman implies this type of frequent monitoring is psychologically unhealthy and counterproductive to the patient, big-picture approach required for successful long-term investment.

His message conveys that investing should be viewed as a marathon, not a series of sprints, and daily price swings should not distract from the long-term trend if one’s time horizon is measured in years rather than days or months.

Birthday: March 5, 1934 – Death: March 27, 2024

Daniel Kahneman: Lack Buys Misery

Posted by admin on Saturday, January 13, 2018

Daniel Kahneman Money Quote saying we can dispute whether having money can give you happiness, but we can absolutely agree that not having it makes you miserable. Daniel Kahneman said:
 

 

“Money does not buy you happiness, but lack of money certainly buys you misery” — Daniel Kahneman

 

 

In this quote, Daniel Kahneman acknowledges that while financial wealth alone does not directly cause happiness, a lack of money often leads to misery through life stresses and constraints.

The best interpretation is that Kahneman recognizes money provides for basic security, comforts and opportunities that support well-being, even if prosperity itself does not guarantee joy.

Not having sufficient funds to meet needs can undermine happiness through worries over necessities like food, housing, healthcare and education. While money has diminishing returns beyond a point, its absence introduces difficulties that make fulfillment harder to achieve.

Overall, the quote suggests financial resources help pave the way for happiness through alleviating strains, even if riches alone do not replace deeper sources of meaning and fulfillment.

Birthday: March 5, 1934 – March 27, 2024