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In this initial episode of Rabbithole, Dave Nadig explores the psychology of money and investing with Barry Ritholtz, author of "How Not to Invest." Their conversation challenges conventional financial wisdom and reveals insights about what money is, and how we use and invest it.
Key topics include:
Why money is a tool for freedom and agency, not a store of value or end goal
How childhood experiences shape our lifelong money behaviors and attitudes
Why market crashes affect us differently at various life stages
The dangers of algorithmic social media and information overload for investors
Why avoiding mistakes is more important than chasing extraordinary returns
Rethinking Bitcoin and other investments through better framing
The wisdom of humility in financial decision-making
Barry shares candid personal stories and draws on decades of experience as a trader, strategist, and wealth manager to identify the ideas, numbers, and behaviors that typically destroy wealth.
0:00 - Introduction
0:21 - What we get wrong about money
1:15 - Money as a tool, not an end goal
2:44 - Why money is not a store of value
5:43 - Family dynamics and money psychology
8:05 - Why market crashes affect us differently at various life stages
11:05 - Agency and control in financial life
13:05 - The dollar's purpose as a medium of exchange
16:19 - The Keynesian money illusion
18:04 - How past experiences shape our financial decisions
19:47 - Bitcoin narratives and cryptocurrency framing
23:15 - Thinking of Bitcoin as a technology company
24:33 - Owning asset classes vs. individual stocks
26:47 - The problem with algorithmic social media
30:20 - The dangers of making too many investment decisions
31:15 - Charlie Munger's wisdom on being "less stupid"
34:15 - Book introduction: "How Not to Invest"