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They Had It All. Then Lost Everything. Here’s Why.
A deeper dive into Chapter 5 of The Psychology of Money, and the wisdom it holds for anyone chasing wealth.
The Wisdom in Staying Wealthy: Lessons from The Psychology of Money — As told through the story of Jesse Livermore and Abraham Germanska
I’m currently reading The Psychology of Money by Morgan Housel, and it’s been nothing short of mind-opening. I’m on Chapter 10 now, but back in Chapter Five, I came across an insight—scratch that—wisdom that I just had to share. Free member? Read it here.
In this chapter, Housel tells the story of two men: Jesse Livermore and Abraham Germansky. Their paths never crossed directly, but they were connected in a deeply ironic and tragic way, almost a century ago. Both were stock market legends of their time, making fortunes with bold strategies. Livermore was born in 1877, he became a professional trader before most people knew you could do such a thing. By age 30 he was worth the inflation-adjusted equivalent of $100 million, and was seen as the greatest stock trader of his day. Germansky, 50 years old and an east side real estate operator was also a trader—deep in stocks and real estate.
