Morgan Housel's Same as Ever stands as a testament to the unchanging aspects of human nature. Reading it feels like engaging in a conversation that spans across time. This book combines insights from both history and the future into a singular, enlightening experience.
Housel doesn't just tell us what's happening, he shows us what's always been happening.
It's about how, despite all our advancements and changes, some things about us humans just don't budge. Greed, envy, fear – you name it, they've been around for ages and they aren't going anywhere. They are a constant part of our unaltered nature.
Same as Ever is a journey into the heart of human behavior.
And it's not only about the past. Fast forward 1000 years, we may have become a spacefaring civilization, but even then, the same emotions will punctuate our world. People will still respond to greed, fear, risk, exploitation, and tribal instincts in the same way as they do today.
Though Housel offers several bursts of wisdom in this book, I have culled some of the most salient takeaways. The remainder of this review will shed light on those 'key takeaways' and the conclusion will highlight a few weaknesses and reasons why this book may not achieve the same significance as The Psychology of Money.
So without ado, let's dive right in:
1. Embrace Uncertainty
Morgan Housel argues that people crave certainty to the extent that they dismiss probabilities even when the probabilities are favorable.
For example, a project with a 75% success rate might be disregarded simply because it's not a sure thing. Housel states, "Certainty is so valuable that we will never give up the quest for it." Robert Greene, in his book Mastery, wrote something similar: "The need for certainty is the greatest disease the mind faces."
This reflects our innate desire for stability and predictability, overlooking the dynamic nature of life where probabilities play a pivotal role.
2. Become a Top Storyteller
Housel emphasizes the power of storytelling in the chapter called 'Best Story Wins'. He asserts that the most successful individuals are not just correct but also compelling storytellers.
The idea is that engaging storytelling, just like Richard Feynman's approach to physics, transforms mundane facts into captivating narratives.
Housel remarks, "It's not what you say or what you do, but how you say it and how you present it." This underscores the significance of delivery and presentation in communication, beyond just the content.
3. Don't Rest on the Laurels of the Past
Housel warns against the dangers of complacency. He draws from the fall of empires and stock market frenzies to illustrate how comfort and success can breed downfall.
Jurgen Klopp, the manager of Liverpool FC and the architect of the club's phenomenal recent success, chose to step down last week even while his team leads the league.
Klopp heeds what Morgan emphasizes: "The only way to know where the top is, is to experience the decline." Great minds are more interested in the journey than in finding out the peak.
4. The Paradox of Stress and Discomfort
Housel argues in the book that the best work often emerges under stress and tight deadlines.
Referring to the advancements made in 1930, post-Great Depression, he demonstrates how struggle and discomfort can be powerful motivators.
Pain and fear can sometimes be more effective than positive emotions in driving progress.
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5. Don't Underestimate the Impact of Small Changes
House underlines in the book that small changes, actions, and events tend to compound over time. We call it progress when they result in benefits to society and we call it disaster when they set off a chain reaction of negative events.
"Little changes compounded for a long time create extraordinary changes," notes Housel. The only thing is we don't see these events coming.
For instance, the accumulation of subprime loans over the years culminated in the 2008 financial meltdown. Similarly, decades of research in AI remained largely under the radar until ChatGPT burst onto the scene in 2023. Small changes compound.
6. Learn to Endure Pain and Suffering
Housel notes, "Everything comes with overhead. Nothing worth pursuing is free." He discusses the necessity of enduring hardship.
To understand this better, consider the mindset of a marathon runner. Unlike a sprint, where speed and instant energy are key, a marathon requires pacing, endurance, and mental fortitude to overcome the pain barrier.
This metaphorically aligns with Housel's view on the importance of long-term perseverance over seeking quick fixes.
7. Incentives Wield Formidable Power
If your annual bonus is contingent on relentless cost-cutting, then no rationale or logic in favor of increasing expenditure will persuade you.
Top management often makes silly decisions that go against the grain. You may think they are a bunch of fools. But it's the incentives hidden from employees down the line, that often drive their decisions.
Housel's exploration into human motivation is a sobering reminder of the lengths to which individuals and organizations go when driven by specific rewards or pressures.
8. First Impressions are Deceptive
In the chapter "Harder than it Looks and Not as Fun as it Seems," Housel challenges our perceptions of leadership and success. I would draw an analogy with the Iceberg Illusion, where only the tip of an individual's character is visible to us.
Take Steve Jobs, for example. For many, he was the epitome of a tech visionary, but only those who witnessed his demanding and super-intense nature could tell you otherwise.
This concept reveals that our trust and admiration are often based on a modicum of reality. reminding us to look beyond the surface. Housel sums it up well: "No one is a prophet in their own land."
9. Walk Through Fire and You Will Know
It's a fact that unless you personally experience something, you cannot truly tell what others are going through. For instance, your wife knows what it feels like to deliver a baby, but you can't ever feel it.
Housel takes it further. He writes that extreme circumstances can radically shift our behaviors. No matter how many case studies you read, your ability or inability to respond to particular scenarios will only become apparent when you are directly in the midst of the action.
Not only this, people react completely differently under stress. So, don't assume people will remain composed in turmoil based on their calm demeanor in peaceful times.
10. Complexity Sells (Unfortunately)
Morgan Housel points out that complexity tends to sell better.
He says complexity holds a morbid fascination among the general public. If you communicate in simple language, you don't receive the same level of respect as someone who uses intricate and complex expressions.
For instance, a 650-page book often garners more attention than a 75-page one. Readers assign more mental weight to the perceived research an author might have conducted to fill 650 pages.
Conversely, an author who distills the core aspects of the same research into simple language and publishes it in 75 pages is often perceived as less knowledgeable. Their work doesn't receive the same respect.
In my opinion, most books, especially non-fiction, could be condensed into a 10-page article. However, who would pay $15 for a book that short?
Final Word
Much of the content of Same as Ever originates from the blog posts of its author. Despite my familiarity with some of the short essays in the book, Housel's ideas and thoughts provoke reflection.
The book presents a mix of plausible assertions, such as 'good times breed complacency,' alongside more debatable claims like 'the world breaks about once every ten years.' However, Housel should have put forth more evidence supporting these assertions.
Some ideas in the book overlap, and the independent chapter format might not sit well with everyone. If I may suggest, given the overlapping themes, Housel could have been more effective in weaving these ideas into a coherent narrative.
By focusing on a few key concepts, he could have presented his arguments more concretely, rather than dividing them into 22 separate chapters.
But what Housel still manages to do is hold up a mirror to our unchanging nature. He shows us that, through all the ups and downs, some things about us will always stay the same. And that, in itself, is both comforting and a bit of a wake-up call.
Overall, Same as Ever is both entertaining and informative.
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