Wolf Review(The Art of The Good Life by Rolf Dobelli)

 

(Contents)

My circle of friends knows I like to read. Given what I am doing with the stock market, one would expect me to pour through hours and hours in technical analysis(TA) books that teach readers how to make a killing by reading chart formation. Strangely, most of the books I consumed are human psychology-related, a subject that is most interesting to me. I believe an investor will be far better off understanding the human condition than pouring through hours on TA. 

This title, The Art of the Good Life by Rolf Dobelli, was my recent discovery even though the book was out in 2017. It turned out to be a fine book to read.

The chapter on Mental Accounting: How to turn a loss into a win stated that, living a good life involves how one interprets facts in a constructive way. Adding 50% to the cost of a restaurant meal is what the author did. By adding 5 euro tax to the cost of a 10 euro glass of wine, makes one rethink about ordering that glass of wine. It helps the author to keep his expenditures in check. Paying the cost of service like a hotel bill upfront prevents a price shock which will more or less guarantee a wonderful weekend vacation.

Success makes people feel good about themselves. The key to success is knowing your circle of competence. Inside the circle are the skills you have mastered. Those beyond the circle are things you understand partially or not at all. Charlie Munger adds, “ The size of the circle is not important, it is knowing the limit of your boundaries that is vital.” 

In the chapter, Read Less, but Twice-On Principle. The author suggests having a lot of reading material on hand. Read one third, skim through another one third and leave another third of lousy books unread. Time is precious to be reading bad books. Only good books should be read twice. A person absorbs 5% of the book after the first read; the second read increases that impression by 30%. 

Bill Gates and Warren Buffett both agreed focus is the most important factor in their success. Email, Facebook, Instagram, TikTok, tweets and alerts are vying for our attention. Most of the information, as much as 90% is rubbish. They are focus traps. Focus has a bearing on how happy one can be. It allows one to get more out of life, casting off the unimportant.

The book gives an important perspective on buying less and experiencing more. A brand-new BMW gives the owner more pleasure than buying a ford escort, as human psychology associates more luxury with more pleasure. Does the owner of a BMW get the same road experience as the rest? Most likely. Buying a big stately house with 10 rooms just outside the city brings joy to the owner for the initial three months. The inconvenience of not having your nearby grocer and favourite café starts to creep in. Having to travel an hour to work every day reduces the joy of ownership further. 

Focusing on illusion: we tend to overestimate the pleasure in everything we buy and their impact on our life. On a personal note, I used to think I must have a TV at home to watch my CNBC and the History Channel, but I am proud to make a declaration: it has been 3 years since I had a TV at home. I missed nothing really, the CNBC is still on tablet. As for the History Channel? Never missed it. Reading and blogging took the place of my missing TV. It is not difficult to ditch the illusion for more fulfilling real life experiences. 

I enjoyed The Art of the Good Life by Rolf Dobelli. It offer common sense and practical advice to living a good life. It goes on Lone Wolf highly recommended list for its easy-to-read chapters. Are you ready for a good life? God bless. 

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