James Montier: On Happiness & Investing
Following up on our journey through James Montier’s universe I’m presenting a paper of his on happiness. Notice this paper was written for a global equity strategy group. Could you imagine an investors reaction to the following strategies.
Article Introduction (Via DRKW)
If you are after specific investment advice, stop reading now. We seek to explore one of Adam Smith’s obsessions: what it means to be happy. We also discuss why that’s important to investors, and how we can seek to improve our own levels of happiness. The list below shows our top ten suggestions for improving happiness.
Conclusions (Via DRKW)
“Don’t equate happiness with money. People adapt to income shifts relatively quickly, the long lasting benefits are essentially zero.”
“Exercise regularly. Taking regular exercise generates further energy, and stimulates the mind and the body.”
“Devote time and effort to close relationships. Close relationships require work and effort, but pay vast rewards in terms of happiness.”
“Have sex (preferably with someone you love). Sex is consistently rated as amongst the highest generators of happiness. So what are you waiting for?”
“Don’t pursue happiness for its own sake, enjoy the moment. Faulty perceptions of what makes you happy, may lead to the wrong pursuits. Additionally, activities may become a means to an end, rather than something to be enjoyed, defeating the purpose in the first place.”
“Seek work that engages your skills, look to enjoy your job. It makes sense to do something you enjoy. This in turn is likely to allow you to flourish at your job, creating a pleasant feedback loop.”