Same As Ever

A Guide to What Never Changes By Morgan Housel

Book Summary

Morgan Housel, he’s a former columnist at The Motley Fool and The Wall Street Journal as well as a distinguished author, celebrated for his insightful exploration of psychology and economics in books like "The Psychology of Money," where he delves into how personal beliefs shape financial decisions.

He’s now back with Same as Ever: A Guide to What Never Changes a book to help you tell the future by learning timeless human behaviors and patterns that persist despite the ever-changing world we live in.

Here are the five big ideas from Same As Ever:

Big Idea #1 -  Focus On Constants

Housel uses a conversation between Warren Buffett and a friend to illustrate this. In 2009, amidst the global economic downturn, Buffett was asked by a friend, Jim, how the economy could possibly recover from such a crisis. Buffett responded by asking what the bestselling candy bar was in 1962, which was Snickers, and then revealed that it remained the bestseller even at that present time of economic hardship. This conversation ended in silence, leaving a profound message: some things remain constant, even in times of great change. Focus on those constants.

Reflecting on this, how do you identify the “Snickers’ constants in your professional and personal life amidst the chaos?

Big Idea #2 - Factor Emotions

Housel uses a time-travel metaphor to emphasize his point. Imagine traveling five hundred years back or forward in time. The advancements in technology and medicine would be astounding, and the geopolitical landscape would be unrecognizable. But amidst all this change, you would still find people grappling with the same fundamental emotions and behaviors – greed, fear, risk, jealousy, and tribal affiliations. Another great Warren mantra, “Be fearful when others are greedy and be greedy only when others are fearful.” These aspects of human nature are constant and should be factored in to any risk or opportunity

In your own experience, how have these timeless human traits influenced your decisions, especially when facing unknown risks?

Big Idea #3 - Manage Expectations

To continue with the time-travel metaphor, Housel emphasizes that people's pursuit of happiness and certainty is a constant across time. Despite the immense changes in technology, politics, and society, the human quest for these elements remains unchanged. Reflecting on this, consider how your own search for happiness and certainty has shaped your life choices. The first rule of happiness is low expectations. This doesn’t mean you can’t be ambitious but there has to be a realistic anchor or else you will be on the hamster wheel always striving for the unattainable. This also goes the same for all of your personal and professional relationships. It could be as simple as knowing yourself and saying you can’t meet your colleague for 4pm but instead 5pm and arrive there early by 4:45pm.

How do you balance your ambitions with realistic expectations to maintain a sense of contentment and well-being in your own life?

Big Idea #4 - Forget Trends

Next example comes from big man J himself, Jeff Bezzos. Housel shares a quote from the Amazon founder, who reflects on the importance of understanding what won't change. Bezos notes that while many people ask him about what will change in the next ten years and how the companies should adapt now. However, the more critical question is what won't change. He argues that the ability to predict and rely on these constants is crucial. In Amazon's case, it's the assumption that customers will always want low prices and fast delivery. This insight from Bezos underscores the value of recognizing and adapting to unchanging aspects in business and life. 

How do you identify and leverage the constants in your professional environment to drive success?

Big Idea #5 - Tell Stories

May the Best Story Win. Housel says, 'Stories are always more powerful than statistics.’ And this can be proven in our every day lives where someone maybe even ourselves have made a decision based on emotions rather than facts. We’re an emotional species and it’s the stories we tell ourselves and others that ultimately dictate how we act whether its in finances, politics, business and the list goes on. Stories stick which is why Morgan used a lot of them in his book rather than stats.

What stories have shaped the way you act?

In brief…

Now you know the constants to pay attention to, how will you use them to influence your decisions moving forward?