11 Incredible lessons from The Intelligent Investor:
1. Price is what you pay value is what you get
As an investor, you try to buy stocks for less than what they're worth.
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
As an investor, you try to buy stocks for less than what they're worth.
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
2. Think on the long term
In the long run, stock prices will always follow the evolution of a company's intrinsic value.
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
In the long run, stock prices will always follow the evolution of a company's intrinsic value.
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
3. Learn from your mistakes
The best investors are learning all the time.
Always learn from your mistakes. Or even better: learn from other people's mistakes.
“Those who do not remember the past are condemned to repeat it.”
The best investors are learning all the time.
Always learn from your mistakes. Or even better: learn from other people's mistakes.
“Those who do not remember the past are condemned to repeat it.”
4. Run your own race
Every investor is unique.
Make investment plans that suit your investment goals and horizon.
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
Every investor is unique.
Make investment plans that suit your investment goals and horizon.
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
5. Invest. Don't speculate
Speculators focus on the short term.
Investors focus on the long term.
“People who invest make money for themselves; people who speculate make money for their brokers.”
Speculators focus on the short term.
Investors focus on the long term.
“People who invest make money for themselves; people who speculate make money for their brokers.”
6. Focus on the fundamentals
Only buy stocks you would like to own for 10 years or more.
“invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price.”
Only buy stocks you would like to own for 10 years or more.
“invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price.”
7. Use a margin of safety
Even the best investors are wrong from time to time.
That's why you should always use a margin of safety when investing.
"To have a true investment, there must be a true margin of safety."
Even the best investors are wrong from time to time.
That's why you should always use a margin of safety when investing.
"To have a true investment, there must be a true margin of safety."
8. Corrections offer opportunities
Buy stocks when everyone is selling.
Sell stocks when everyone is buying
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
Buy stocks when everyone is selling.
Sell stocks when everyone is buying
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
9. Focus on risk management
The best investors focus on risk management first and returns second.
"Successful investing is about managing risk, not avoiding it."
The best investors focus on risk management first and returns second.
"Successful investing is about managing risk, not avoiding it."
10. Your worst enemy
In investing, you are your own worst enemy.
Be as rational as possible.
"The investor's chief problem-- even his worst enemy-- is likely to be himself."
In investing, you are your own worst enemy.
Be as rational as possible.
"The investor's chief problem-- even his worst enemy-- is likely to be himself."
11. Always be optimistic
For 240 years it's been a terrible mistake to bet against America.
And today is not a good moment to do so.
"To be an investor you must be a believer in a better tomorrow. "
For 240 years it's been a terrible mistake to bet against America.
And today is not a good moment to do so.
"To be an investor you must be a believer in a better tomorrow. "
That's it.
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▪️ Each Tuesday we share 5 investment insights
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Start your journey here:
qualitycompounding.substack.com
If you liked this, you'll love our website.
▪️ Each Tuesday we share 5 investment insights
▪️ Each Thursday we publish a deeper investment article
Start your journey here:
qualitycompounding.substack.com
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