Hello, I'm Ted Sides, and this is Capital Allocators.

This show is an open exploration of the people and process behind capital allocation.

Through conversations with leaders in the money game, we learn how these holders of the keys to the

kingdom allocate their time and their capital. You can keep up to date by visiting Capital

Allocatorspodcast.com. My guest on today's show is Morgan Housel, a partner, a collaborative

fund, and one of my favorite writers about

investing. Morgan recently released his first book, The Psychology of Money, and I'll go on record

and predict it will be a bestseller in short order. Our conversation starts with Morgan's

non-traditional education, his path to writing, and his process for writing

each week. We then turn to the book and discuss some anecdotes about luck and risk, greed,

compounding, patience, and tail events. We close with two of Morgan's personal stories,

one about his own investing, and the other, which seems

inconceivable as you listen, about his lifelong challenge with stuttering.

Please enjoy my conversation with Morgan Howell.

Morgan, great to see you, bud.

Good to see you, too, Ted. Thanks for having me today.

We're going to go all the way back and just start with your background. So why don't you talk

about what was most important to you in your school years? If there's anything unique about my school

years, I grew up around Lake Tahoe. And from an early age, when I started when I was

around 10 or 12, I became a ski racer. And I wanted to be the next Olympic champion. I wanted to be the next

world champion. I was like a lot of people in sports and whatnot. It was just I wanted to swing for the

fences, go to the top. And I became a ski racer. became more competitive in my teenage years, so much so that I didn't

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