Ep18: Daniel Crosby – A Big House Can Lure Even a Behavioral Expert

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Guest profile

Daniel Crosby, PhD, is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets.

His first book, Personal Benchmark: Integrating Behavioral Finance and Investment Management, was a New York Times bestseller. His second book, The Laws of Wealth, was named the best investment book of 2017 by the Axiom Business Book Awards and has been translated into 5 languages.

His latest work, The Behavioral Investor, is a comprehensive look at the neurology, physiology, and psychology of sound financial decision-making.

In this episode, Daniel shares his worst investment ever buying a big house of his dream thinking that it would central to his happiness equation.


“Money can keep you from some level of heartache, but it can’t buy really much happiness at all.”

Daniel Crosby



Topics Covered: 

00:54 – Daniel Crosby’s professional and investment background as a psychologist and behavioral finance expert

03:19 – Daniel shares his backstory that led to his worst investment ever

05:57 – Expected annual appreciation of houses at 13%, according to Robert Schiller considering inflation and opportunity cost

07:40 – The money pit of his dream house: high property tax, high maintenance cost

05:57 – Expected appreciation of houses is at 13%, considering inflation and opportunity cost

08:50 – Lesson Daniel learned from his investment experience

09:50 – Geographical cures as Andrew explained

10:34 – Andrew’s takeaways from Daniel’s story of loss

13:43 – Daniel’s actionable advice to help people avoid making the same investment: Go speak a therapist that has some acumen around talking around financial issues.

Main Takeaways

  • Lesson 1: “Money is so wrapped up in considerations of self-worth and happiness. And disentangling those things would have been powerful for me. And would have led me to a better decision, I believe.”– Daniel Crosby
  •  Lesson 2: “Money is better at buying the absence of worry or the absence of sadness than it is at buying happiness.”– Daniel Crosby
  • Lesson 3: “One of the foundational things in my life is going through that period of time where I had no money, and I had complete happiness. It always tells me that money buys nothing. It does not buy happiness. It does not by sadness, it just is neutral.”– Andrew Stotz

Connect with Daniel Crosby:

People Mentioned:

Andrew’s books

Andrew’s online programs

Connect with Andrew Stotz:

About the show & host, Andrew Stotz

Welcome to My Worst Investment Ever podcast hosted by Your Worst Podcast Host, Andrew Stotz, where you will hear stories of loss to keep you winning. In our community, we know that to win in investing you must take the risk, but to win big, you’ve got to reduce it.

Your Worst Podcast Host, Andrew Stotz, Ph.D., CFA, is also the CEO of A. Stotz Investment Research and A. Stotz Academy, which helps people create, grow, measure, and protect their wealth.

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