Welcome to the Enterprising Investor Podcast: Money, Happiness, and Investing Success
Welcome to another episode of the Enterprising Investor podcast, where we bring you intimate conversations with influential figures from the world of finance. In this episode, our host Mike Wallberg, CFA, MJ, sits down with Meir Statman, a professor at the Levy School of Business at Santa Clara University and author of A Wealth of Well-Being: A Holistic Approach to Behavioral Finance.
We dive deep into the connection between money and happiness, and how your mindset can impact your investment success. Statman stresses that while money is important for financial stability, true happiness comes from a well-rounded sense of well-being that encompasses family, work, health, education, and more. Balancing these aspects is key to achieving overall life satisfaction.
During the conversation, we also explore how different generations approach risk and portfolio construction. Statman emphasizes the importance of setting long-term goals and taking calculated risks that can lead to meaningful rewards. Rather than chasing get-rich-quick schemes, he advises a disciplined and science-based approach to investing that focuses on gradual growth over time.
Statman shares a simple portfolio strategy aimed at avoiding poverty and striving for holistic richness, not just in monetary terms but in overall well-being. He discusses the benefits of diversification and the power of compounding, encouraging investors to stay in the market rather than trying to outperform it.
As we wrap up, Statman leaves us with some valuable advice for the younger generation: be willing to make sacrifices today for a brighter tomorrow, take smart risks, and remember that helping others can ultimately enhance your own well-being.
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All opinions expressed in this post are those of the author and should not be taken as investment advice. The views shared do not necessarily reflect those of CFA Institute or the author’s employer.
Image courtesy of Nick Webb, licensed under the Creative Commons Attribution 2.0 Generic license. Cropped for illustration purposes.