Summary of Become a Master of Finance with Harvard Professor Mihir Desai (with Lewis Howes)

00:00:00 - 00:45:00

This video discusses how to become a master of finance, with Harvard Professor Mihir Desai. The main points are to save as much as possible, to think about taxes, and to have fun with your money. Desai also discusses the importance of storytelling and empathy in teaching, and how these can help people understand the world of finance.

• 00:00:00 Harvard Professor Mihir Desai has written a book entitled "The Wisdom of Finance: Discovering Humanity in the World of Risk and Return." In the book, Desai seeks to demystify finance and fix its broken chunks. He believes that if people understand finance, they will be better equipped to make life-changing decisions.
• 00:05:00 Professor Mihir Desai of Harvard discusses the concepts of borrowing, debt, and investment, stressing the importance of understanding what the upfront investment is and how much incremental wages a degree or skill will bring. He also points out the importance of understanding luck and skill when it comes to investing, and how difficult it is to consistently beat the stock market.
• 00:10:00 The video discusses how to become a master of finance, with Harvard Professor Mihir Desai. The main points are to save as much as possible, to think about taxes, and to have fun with your money.
• 00:15:00 In his book "Risk in Return," Harvard Professor Mihir Desai takes readers on a journey through the world of finance, explaining concepts in an easy-to-understand way using stories from Jane Austen and other classic works of literature. One of the lessons he teaches is that options, a type of derivative, are not just something to be afraid of, but something that can be a tool for managing risk.
• 00:20:00 The video discusses the idea of options, how they can be addictive, and how they can be valuable in terms of a person's options. Professor Mihir Desai discusses how bankruptcy used to be viewed in the past and how it has changed over time. He discusses how the idea of options applies to finance and how it can help people avoid failure.
• 00:25:00 In this video, Harvard Professor Mihir Desai discusses the concepts of debt and leverage. He also discusses the similarities between these concepts and the Shakespeare play "The Merchant of Venice." He explains that debt is a commitment between two or more parties, and that leverage is the use of this commitment to achieve outsized returns. He also discusses the importance of reputation in the world of finance, and gives examples of people who have used their reputations to achieve great things.
• 00:30:00 Harvard Professor Mihir Desai discusses the importance of having a work ethic, intelligence, and attitude in order to be successful. He specifically mentions the parable of the talents as an example of how smarts don't always equate to success. Desai shares a story of a former student of his who went on to have a significant impact in government.
• 00:35:00 In this video, Harvard Professor Mihir Desai shares the story of the two men in the parable of the talents, John Milton and Samuel Johnson, and how they applied the lesson to their own lives. Desai emphasizes the importance of empathy and humility in teaching, and reminds students that everyone has different capacities. He also suggests that teachers be encouraging and supportive to their students, rather than dictating to them.
• 00:40:00 Harvard Professor Mihir Desai teaches a one-lesson lesson on how to become a master of finance. He emphasizes the importance of storytelling and how it can help people understand the world. The second thing he would like to share is the importance of kindness and generosity, which are massively underestimated.
• 00:45:00 Professor Mihir Desai of Harvard shares his definition of greatness, which is based on using one's talents to their fullest potential and helping others. He encourages viewers to look inside themselves and find the greatness within, no matter who or what they are.