Remember the book The Millionaire Next Door? Our office enjoyed this popular book because it highlights the traits that show up in many successful families who will never be in the spotlight. We were reminded of some of these same lessons when we revisited a “tortoise and hare” story shared by financial writer Morgan Housel. In it, Housel compares the investment success of business secretary Grace Groner with the supposedly bad breaks that befell business executive Richard Fuscone.

Groner lived a modest life, with a sturdy but quiet career. She reportedly bought $180 worth of her company’s stocks in the 1930s … and never sold them. When she passed away in 2010 at age 100, her net worth was $7 million, which she left to charity. Granted, she was lucky to select a successful investment, but we would suggest her true success was grounded in her steadfast investing.

In contrast, Fuscone is Harvard-educated and a former vice chairman of Merrill Lynch’s Latin American division. And yet, in 2010, he declared personal bankruptcy, reportedly stating, “I have been devastated by the financial crisis which came to a head in March 2008 … I currently have no income.”

We share Housel’s sentiments, when he says, “These stories fascinate me. There is no plausible scenario in which a 100-year-old country secretary could beat Tiger Woods at golf, or be better at brain surgery than a brain surgeon. But – fairly often – that same country secretary can out-finance a Wall Street titan. Money is strange like that.”

Enjoy this short (true) story by one of the great personal finance writers of our time. *No need to read the full report unless you really get inspired.

We love Morgan Housel’s writing. Just last month we shared one of his gems and we’re back again with more because we love how he thinks and writes, plain and simple.

In Housel’s excellent post, “Getting Rich vs. Staying Rich,” he compares the real-life experiences of two wealthy investors during and after the crash of 1929. One immediately lost everything. The other shorted the market and immediately became the equivalent of a billionaire. What do they have in common? Hint: It’s got something to do with what can happen to stock speculators in a New York minute. Click here to get the full story! 

Since many of the market’s long-term rewards come from the risks you’re willing to take, making serious money usually hurts — at least when it appears to be out of favor with the “consensus.” Morgan Housel’s recent blog post, “Every Great Investment Hurts,” offers a fresh perspective on the source of that pain.

To trade profitably in highly competitive markets, you not only must make the right calls on future pricing, you’re best off making them when most other investors think you’re wrong. That’s what this simple diagram from Housel’s post suggests.

How do you end up in that profitable sweet spot? You can try guessing correctly almost all the time (super hard). Or you can embrace evidence-based investing, which should guide you toward being correct more often than not … if you stick with your plans. That can still be hard, but at least the odds are stacked in your favor.