Last Updated Oct 8, 2011 6:28 PM EDT
Though Richards insists that it's not art, he manages to illustrate points with some very simple diagrams that take me so much longer to get across with words. All of his diagrams explore the relationship between people and their money.
I knew I was going to like this guy when, upon introducing himself, he said "nice to meet a fellow trouble maker." Richards was kind enough to let me use some of his sketches, and here are a few of my favorites, with a bit of my own interpretation.
Knowledge or Feelings?
Jason Zweig noted that we have two brains: The reflexive brain, which acts on instincts (feelings) such as wanting that slice of artery-clogging pepperoni pizza. And the reflective brain, which acts on the knowledge gained by applying facts and logic.
In investing, it can be difficult to determine which brain is in the driver's seat. Take for example, jettisoning the stocks you bought earlier this year after the 20 percent off sale. Is it your logic telling you that this time it's different because of the global debt crisis, or is this your reflexive brain telling you that the sky is falling and causing you to repeat the cycle of buying high and selling low? Choose carefully.
Turn the page for "Slow and Steady"