No one is crazy
Or, maybe you were told of a relative or neighbor who was once wealthy that lost almost all their wealth in a short time —and got angry at how they couldn't manage their money. Many of us have had such experiences one way or another.
When you see how people handle money, you will be tempted to think some of them are crazy. But no one is crazy. People make terrible money decisions all the time, but it's not because they don't think properly. It's just that when it comes to money, we are all different.
Housel estimates that your experience with money makes up 0.00000001% of what the rest of the world experiences. People born in different generations tend to have varying views of money and this affects everything, including how they invest. For example, if you were born when inflation was low, you're more likely to invest in bonds compared to someone born in the heights of economic inflation.
Luck plays a role. We can't tell how much luck goes into success, but we do know it's undeniable. Success is usually not untraceable to favorable events like meeting mentors or being in the right place at the right time — that's the uncontrollable factor, that's the luck.
We can do almost nothing about luck and risk and how they affect our finances. But there are other things in our control. And it's wisdom to focus on maximizing the things you can control...let's talk about those things.