Warren Buffett said there are 3 chapters investors must read.
After that, you know all you need!
1. Chapter 8 (The Intelligent Investor)
2. Chapter 20 (The Intelligent Investor)
3. Chapter 12 (Keynes' The General Theory)
Here's what you need to know:
After that, you know all you need!
1. Chapter 8 (The Intelligent Investor)
2. Chapter 20 (The Intelligent Investor)
3. Chapter 12 (Keynes' The General Theory)
Here's what you need to know:
The Intelligent Investor Chapter 8
1. Profiting from market fluctuations:
The stock market offers the possibility to constantly trade securities. Thus, prices fluctuate.
The investor can try to benefit from this in two ways. Either by (1) Timing or (2) Pricing:
1. Profiting from market fluctuations:
The stock market offers the possibility to constantly trade securities. Thus, prices fluctuate.
The investor can try to benefit from this in two ways. Either by (1) Timing or (2) Pricing:
2. The Paradox of Timing
While timing seems like a viable option at first, it'll almost always turn investors into speculators.
There is no reason to believe that you can predict the unknowable better than the rest of the investors trying to do the same.
While timing seems like a viable option at first, it'll almost always turn investors into speculators.
There is no reason to believe that you can predict the unknowable better than the rest of the investors trying to do the same.
3. Mr. Market
Graham refers to the daily market fluctuations as Mr. Market.
A moody person selling stocks too expensive one day and too cheap the other.
The realization here is to make Mr. Market your servant.
Only hit good serves.
Buy only when he offers cheap prices.
Graham refers to the daily market fluctuations as Mr. Market.
A moody person selling stocks too expensive one day and too cheap the other.
The realization here is to make Mr. Market your servant.
Only hit good serves.
Buy only when he offers cheap prices.
4. Never Invest Money You Need
You can only use Mr. Market's mood swings to your advantage when you're not forced out of the market in bad times.
If you invest money that you suddenly need, you're forced to sell at his prices. However bad they may be.
You can only use Mr. Market's mood swings to your advantage when you're not forced out of the market in bad times.
If you invest money that you suddenly need, you're forced to sell at his prices. However bad they may be.
Tomorrow, a summary of Chapter 20 will follow, then Chapter 12 of Keynes' The General Theory.
If you don't want to wait, you can already read a detailed version of all 3 chapters here:
danielmnke.com
If you don't want to wait, you can already read a detailed version of all 3 chapters here:
danielmnke.com
That's it for today!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
Loading suggestions...