In chapter 7, the author focuses mainly on what economics says about getting rich quickly. Wheelan discussed an extremely important lesson about how to be successful when investing. He talked about how not opting out when the fear of losing money hits us. When investing in the stock market, something I know very little about, Wheelan suggests that it is key to stay put, and not sell immediately when something goes wrong. He provided several examples and analogys to back up the fact that one can earn more money by not making decisions based off emotions. The example that stood out most to me was the analogy of standing in line at the grocery store. Eventually the amount of time you wait every shopping trip averages out, and by remaining put you usually get through faster.
Another tip Wheelan stresses as important is taking risks. I always thought that by taking risks it was considered poor money management; however, the author proceeds to encourage his readers to take risks because "riskier investments must offer a higher expected return in orde to attract capital." For me this is challenging now, and will be in the future. It's hard to trust that eventually the risks will pay off. According to Wheelan, "you will be compensated for taking more risk. Thus, the more risky your portfolio, the higher your return - on average." All these ideas/facts are important lessons, especially for the future when most of us are trying to become successful investors/money managers.
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