Three Key Takeaways from Our Dr. Daniel Crosby Interview On Invest Well, Be Well
Dr. Daniel Crosby was the perfect guest to launch the Invest Well, Be Well podcast. The show's tagline—wiser investing and stronger living—fits seamlessly with Dr. Crosby’s message and mission.
The conversation centered on his latest book, The Soul of Wealth, which already deserves a spot on every investor's and advisor's bookshelf. The book dives deep into the intersection of money and meaning, contrasting the pursuit of material wealth with the pursuit of psychological well-being.
Dr. Crosby is not only one of today’s leading voices in behavioral finance, but he’s also a wise investor and an exceptional communicator. His messages are relevant, memorable, and—most importantly—sticky. These are lessons and reminders that truly strengthen both our investing and our living.
There were plenty of insights throughout the episode. In fact, every question that co-host Robyn Murray or I asked led to a meaningful takeaway. But if I had to highlight just three:
1. Overconfidence: The “Mother of All Biases”
I found it especially compelling when Dr. Crosby identified overconfidence as the “mother of all (behavioral) biases.” While confidence is crucial for success in many areas of life, overconfidence can be a major pitfall for long-term investors. It can lead to excessive trading, concentrated bets, high transaction costs, and a reluctance to acknowledge and correct mistakes.
2. Emotions Can Improve Decision-Making
We often hear that emotions hinder sound investment decisions. But Dr. Crosby shared research showing the opposite can be true—if emotions are used correctly. For example, when investors reflect on their values and priorities before making a decision—say, by looking at a picture of their children—they tend to make better choices. It’s a powerful reminder that meaning and mindfulness can guide us to better outcomes.
3. The Best Investment Is in Yourself
Perhaps the most powerful takeaway: the single greatest driver of financial success is investing in yourself. Dr. Crosby highlighted research showing that education, exercise, therapy, coaching, and interpersonal development are all key drivers of wealth creation. He encouraged listeners to build their earning—and learning—power through continuous growth and self-care. Now that’s wiser investing and stronger living!
Bonus Takeaway: Read The Soul of Wealth
Yes, it’s a book you could finish on an airline flight or on the beach —but you won’t want to. Each chapter is an essay worth savoring. In fact, my wife and I have started reading a chapter together, then discussing it afterward. It’s a wonderful way for individuals—and couples—to deepen their understanding of money and meaning.
Enjoy the podcast—and please let me know what you think.