We love Morgan Housel’s writing. Just last month we shared one of his gems and we’re back again with more because we love how he thinks and writes, plain and simple.

In Housel’s excellent post, “Getting Rich vs. Staying Rich,” he compares the real-life experiences of two wealthy investors during and after the crash of 1929. One immediately lost everything. The other shorted the market and immediately became the equivalent of a billionaire. What do they have in common? Hint: It’s got something to do with what can happen to stock speculators in a New York minute. Click here to get the full story! 

We love traditions, so it was with particular delight that we reconvened here in St. Louis earlier this month, for our annual summer family party. The shindig celebrated a dozen years as a firm – and counting. In my career I haven’t ever been part of a group with better chemistry across all age groups. The team and family fellowship is one of the main reasons I still love what I do!

Since many of the market’s long-term rewards come from the risks you’re willing to take, making serious money usually hurts — at least when it appears to be out of favor with the “consensus.” Morgan Housel’s recent blog post, “Every Great Investment Hurts,” offers a fresh perspective on the source of that pain.

To trade profitably in highly competitive markets, you not only must make the right calls on future pricing, you’re best off making them when most other investors think you’re wrong. That’s what this simple diagram from Housel’s post suggests.

How do you end up in that profitable sweet spot? You can try guessing correctly almost all the time (super hard). Or you can embrace evidence-based investing, which should guide you toward being correct more often than not … if you stick with your plans. That can still be hard, but at least the odds are stacked in your favor.