The first book of the book set that I call “The Most Important Books On Investing”, is Seeking Wisdom: From Darwin To Munger by Peter Bevelin.
Majority of the people who attempt to invest in the stock market usually underperforms the S&P 500. The S&P 500 is an index of 500 of the largest companies (by capitalization) that have common stock and are listed on the New York Stock Exchange or the NASDAQ.
One of the reasons why most people do poorly when investing in the stock market compared to just investing in an index fund representing the S&P 500 is not because of the lack of information, but because of misjudgments.
Everyone has access to almost the same information about companies to invest in. But when choosing the companies to “place a bet” on in hopes to make a positive return on their investment, it is more so psychological than anything else.
That is what the book Seeking Wisdom is all about. At first glance when people see this book being marketed and sold together with books on investing, they don’t understand why a book about what influences our thinking has to do with investing. But as I’ve mentioned above, it has everything to do with investing. And understanding how we, as humans, naturally think we can begin to dissect the tendencies that leads us to make poor decisions in investing and life.
Seeking Wisdom is a foundational book on metacognition that will help you understand the following about how we naturally think:
- What Influences Our Thinking
- The Psychology Of Misjudgments
- The Physics And Mathematics Of Misjudgments
And the book ends with guidelines to better thinking.
The information shared in this book is not only for the use for investing, but is also helpful to know so that we may begin to make better and more logical decisions.
Stay tuned for Part 2 as I’ll delve more into how the book actually is in delivering it’s information on the subjects.