Theo Burchell’s Reviews > The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness > Status Update
Theo Burchell
is on page 80 of 242
Chapter 6:
This chapter was about tail events / wins. Which are 1 in a million events that cause the success. Much like investing 90% of the time you loose money, but 1% causes that 50x of your investment making you a lot of money. So the main idea is to know that 90% of the time it will fail but 5% might make you a lot.
— Aug 08, 2026 01:18AM
This chapter was about tail events / wins. Which are 1 in a million events that cause the success. Much like investing 90% of the time you loose money, but 1% causes that 50x of your investment making you a lot of money. So the main idea is to know that 90% of the time it will fail but 5% might make you a lot.
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Theo’s Previous Updates
Theo Burchell
is on page 220 of 242
Chapter 20:
This was about his experience with investment and what he does. He values independence so that is his goal, he has no mortgage on his house and live frugally on only what he likes which is reading and walking (cheap). This means he invests the rest allowing for compound interest and saving. Not for anything inperticar but just as a safety for the unexpected.
— Aug 20, 2026 01:31AM
This was about his experience with investment and what he does. He values independence so that is his goal, he has no mortgage on his house and live frugally on only what he likes which is reading and walking (cheap). This means he invests the rest allowing for compound interest and saving. Not for anything inperticar but just as a safety for the unexpected.
Theo Burchell
is on page 210 of 242
Chapter 19:
This was a summery with the key points:
Be kind when going right and forgiveness when going wrong, have less ego and more wealth, manage money to help you sleep at night, increase your time horizon, be ok with things going wrong, use money to control your time, be nicer and less flashy, save for no point, define the cost of success, worship room for error, define the game your playing.
— Aug 19, 2026 02:49PM
This was a summery with the key points:
Be kind when going right and forgiveness when going wrong, have less ego and more wealth, manage money to help you sleep at night, increase your time horizon, be ok with things going wrong, use money to control your time, be nicer and less flashy, save for no point, define the cost of success, worship room for error, define the game your playing.
Theo Burchell
is on page 202 of 242
Chapter 18:
The idea of perception and how we fill in the gaps of things we don’t know with stories and how when we want something to be true we use things to back ourselves up rather than find evidence against it. E.g. we’d rather no go into a recession but in 2007-9 we were but no one predicted it in a forecast. Of which nothing is predictable / controlled people just like to feel they can control things.
— Aug 18, 2026 03:18PM
The idea of perception and how we fill in the gaps of things we don’t know with stories and how when we want something to be true we use things to back ourselves up rather than find evidence against it. E.g. we’d rather no go into a recession but in 2007-9 we were but no one predicted it in a forecast. Of which nothing is predictable / controlled people just like to feel they can control things.
Theo Burchell
is on page 187 of 242
Chapter 17:
This was about the difference in optimism and pessimism and how people love to be pessimistic bc it’s hard to be optimistic. Basically the thought that things will go bad or stay the same is easier to think about than the idea that everything will be fine therefore people choose the first.
— Aug 17, 2026 03:05PM
This was about the difference in optimism and pessimism and how people love to be pessimistic bc it’s hard to be optimistic. Basically the thought that things will go bad or stay the same is easier to think about than the idea that everything will be fine therefore people choose the first.
Theo Burchell
is on page 173 of 242
Chapter 16:
This was about knowing the game you are playing + how it is different to the game others are playing, e.g a long term investor is there for 30 years whereas a day trader wants to make £3 per stock by the end of the day, different plans. The mistake comes when you start using one idea to influence the other. A long term trader shouldn’t get caught up in whether there will be a recession or not next year
— Aug 16, 2026 01:51AM
This was about knowing the game you are playing + how it is different to the game others are playing, e.g a long term investor is there for 30 years whereas a day trader wants to make £3 per stock by the end of the day, different plans. The mistake comes when you start using one idea to influence the other. A long term trader shouldn’t get caught up in whether there will be a recession or not next year
Theo Burchell
is on page 163 of 242
Chapter 15:
This was about selecting what you want because nothing is free and knowing the cost of everything even if it says it’s free it will always have a long term cost. always.
— Aug 15, 2026 04:47PM
This was about selecting what you want because nothing is free and knowing the cost of everything even if it says it’s free it will always have a long term cost. always.
Theo Burchell
is on page 154 of 242
Chapter 14:
This was about decision and how our opinions and thoughts change over time, obviously right? How a child’s dream of becoming a tractor driver is unrealistic and how someone 18 can make a decision you stick with till you’re 80. It was saying that decisions change and we should plan for those decisions to change.
— Aug 12, 2026 01:20AM
This was about decision and how our opinions and thoughts change over time, obviously right? How a child’s dream of becoming a tractor driver is unrealistic and how someone 18 can make a decision you stick with till you’re 80. It was saying that decisions change and we should plan for those decisions to change.
Theo Burchell
is on page 146 of 242
Chapter 13:
plan for your plan to not go to plan. We can always plan for the main stuff but the random stuff can creep up on us, which is why having a buffer and safety net is essential when planning. (Like the mice in ww2 stalingrad). Basically we can never be certain therefore plan for things to go wrong and you will be safer than those who don’t.
— Aug 11, 2026 03:46PM
plan for your plan to not go to plan. We can always plan for the main stuff but the random stuff can creep up on us, which is why having a buffer and safety net is essential when planning. (Like the mice in ww2 stalingrad). Basically we can never be certain therefore plan for things to go wrong and you will be safer than those who don’t.
Theo Burchell
is on page 133 of 242
Chapter 12:
This was about surprises, and how they cause the greatest shifts in the economy and everyday life. Therefore w shouldn’t look to the past for current specific advice and rather use the past to form general opinions on money and trends, like how people behave under stress. History also doesn’t have context, we have changed a lot as a world since ‘x’ yet people think it will happen again.
— Aug 11, 2026 02:00AM
This was about surprises, and how they cause the greatest shifts in the economy and everyday life. Therefore w shouldn’t look to the past for current specific advice and rather use the past to form general opinions on money and trends, like how people behave under stress. History also doesn’t have context, we have changed a lot as a world since ‘x’ yet people think it will happen again.
Theo Burchell
is on page 119 of 242
Chapter 11:
Being reasonable is better than. Being rational bc being reasonable you can explain and justify allowing you to believe in it whereas being rational can cause you to leave to early (in stocks that is). It is also very easy to think behaviour rationally however thinking reasonable is the greatest way to predict that behaviour and succeed.
— Aug 10, 2026 03:47PM
Being reasonable is better than. Being rational bc being reasonable you can explain and justify allowing you to believe in it whereas being rational can cause you to leave to early (in stocks that is). It is also very easy to think behaviour rationally however thinking reasonable is the greatest way to predict that behaviour and succeed.