The Dangers of Never Having Enough




The Power of 'Enough': Lessons from John Bogle and Wall Street

In the pursuit of wealth and success, we often lose sight of a simple yet profound concept: enough. This idea, eloquently captured by Vanguard founder John Bogle, serves as a powerful reminder in our increasingly materialistic world.

The Story of 'Enough'

Bogle recounts a conversation between Kurt Vonnegut and Joseph Heller at a billionaire's party:

At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds, "Yes, but I have something he will never have ... enough."

This anecdote perfectly encapsulates the essence of our discussion. In a world where the pursuit of more seems endless, the concept of 'enough' stands as a beacon of wisdom and contentment.

To illustrate the perils of insatiability, let's examine two cautionary tales:

  1. Rajat Gupta: From orphan to McKinsey CEO, Gupta's $100 million fortune wasn't enough. His pursuit of billions led to insider trading and imprisonment.
  2. Bernie Madoff: Already successful in his legitimate business, Madoff's desire for more resulted in one of the largest Ponzi schemes in history.

These stories teach us a crucial lesson:

"If you risk something that is important to you for something that is unimportant to you, it just does not make any sense." - Warren Buffett

Key Takeaways

  1. Stop Moving the Goalpost: Satisfaction shouldn't always rise with results. As the author notes:

    "Happiness, as it's said, is just results minus expectations."

  2. Avoid Social Comparison: The ceiling for comparison is infinitely high. The only way to win is not to play.
  3. 'Enough' is Not Too Little: It's about recognizing when more might lead to regret.
  4. Recognize Invaluable Things: Reputation, freedom, family, love, and happiness should never be risked for more wealth.

The Simple Path to 'Enough'

The good news? Building 'enough' doesn't require dangerous risks. It's about appreciation, contentment, and wise decision-making.

Remember:

"The hardest financial skill is getting the goalpost to stop moving."

By mastering this skill, we can find peace in 'enough' and avoid the pitfalls of endless pursuit.

In conclusion, let's strive not for more, but for enough. It might just be the key to true wealth and happiness.


P.S. AI generated post for test & learning based on chapter from book The-Psychology-of-Money


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