>'The Intelligent Investor' (Ben Graham)
The basics of stock-picking.
>'The Little Book That Builds Wealth' (Pat Dorsey)
A generic title that hides a good primer on competitive advantages (moats).
Your third book should be one about company valuation and the DCF method, so either...
>'Valuation: Measuring and Managing the Value of Companies' (McKinsey & Co.) OR 'Damodaran on Valuation' (Aswath Damodaran)
Reading the shareholder letters of Buffett won't hurt. Other people who've written good letters are Nick Sleep, Terry Smith or François Rochon. The books written by Peter Lynch are interesting too (and make great motivation for those starting), but not all that necessary.
>The Intelligent Investor
I heard that this book is pretty much the Bible of investing and a bit too difficult for beginners? Can you read it after reading the other two?
The best thing for you to do is put it all in a low cost ETF and completely ignore it except when you need to buy things. Then when you get older gradually start moving the money into bonds so you can have a more stable income. Unironically you will do better than 99% of investors
Bonds tend to do better during recessions, yes. And as you get older you’re going to rely on your financial assets more so you’re going to want something more stable. If you retire and have everything in ETFs you can lose it all during a bad year
If you’re young it makes sense to invest more in ETFs. You have more time to let them compound, even if there’s a bad year you can always compensate for it by working more. That becomes less viable the older you get
I used to pick stonks for a living (buy-side equity analyst). Heed this
Unless you do it as a career, you simply do not have the time or the access to information required to beat a broad-market ETF.
Even with a Bloomberg terminal subscription ($27k/yr) giving you all the data you could ever want, an all access pass to every companies investor relations department to answer any questions, etc. you STILL will barely manage +1-3% above your benchmark if you are good.
Rational investing? You couldn't possibly misunderstand more. Investing is more about psychology than anything else. You need to predict what the herd is going to do before they do it. You need to figure out the difference between what a stock is really worth and what the herd thinks it's worth, and play the difference. And so on. My point is, when it comes to investing, put rationality out of your mind completely.
Also pretty good advice. The best investments I have made were buying out of favor, cheap stocks at a steep discount and waiting for the market to reevaluate them. There is a "rational" way to do this. Michael Burry style "deep value" investing is essentially this - finding out of favor, but financially healthy companies that you can buy at a steep discount, and hoping the market reevaluates. The problem is that you are wrong a lot of the time, so you need to cast a wide net (invest in a basket of companies) and be disciplined with your risk management.
>'The Intelligent Investor' (Ben Graham)
The basics of stock-picking.
>'The Little Book That Builds Wealth' (Pat Dorsey)
A generic title that hides a good primer on competitive advantages (moats).
Your third book should be one about company valuation and the DCF method, so either...
>'Valuation: Measuring and Managing the Value of Companies' (McKinsey & Co.) OR 'Damodaran on Valuation' (Aswath Damodaran)
Reading the shareholder letters of Buffett won't hurt. Other people who've written good letters are Nick Sleep, Terry Smith or François Rochon. The books written by Peter Lynch are interesting too (and make great motivation for those starting), but not all that necessary.
This is a list of good books, but don't read these and delude yourself into thinking you are ready to pick stocks. Understanding the concepts of "value", "competitive advantages", "market positioning", "discounted cash flows" are all super good, but they are the bare essentials. I don't know if I've met an investors in a long time that is actually taking this approach in modern portfolio management.
And always remember:
"Time IN the markets beats timing the markets." -> Stay invested in a diversified portfolio and add to that position regularly
"The market can remain irrational longer than you can remain solvent." -> Risk management is where investors are made or broken
>cheap stocks at a steep discount
How do you do that? Do you pick a lot of them and hope some of them give you high returns? Or do you carefully choose just a few?
if markets actually functioned then you would wait for a crash, but the central banks will never give you one, so you just have to buy at the top and keep buying at the top forever, while pretending you're getting a discount
Rational investing? You couldn't possibly misunderstand more. Investing is more about psychology than anything else. You need to predict what the herd is going to do before they do it. You need to figure out the difference between what a stock is really worth and what the herd thinks it's worth, and play the difference. And so on. My point is, when it comes to investing, put rationality out of your mind completely.
It's a good thing some stone dudes were all calm and stuff 2,500 years ago so I don't have to shit the bed when my dog coins lose me the $250 dollars I was going to by a new bong with here in Columbus Ohio, Year of Our Lord 2024.
Investing isn't real. The stock market and shitcoin market are casinos and an 'investor' is no better than the drunk passed out in his chair at the video slot machine. You can make money with luck or if you turn it into your career but don't be deluded about what you're doing.
the best investment you can make is praying before bed every night that this prison planet is mercy killed by aliens
Complete Works of Keynes
>'The Intelligent Investor' (Ben Graham)
The basics of stock-picking.
>'The Little Book That Builds Wealth' (Pat Dorsey)
A generic title that hides a good primer on competitive advantages (moats).
Your third book should be one about company valuation and the DCF method, so either...
>'Valuation: Measuring and Managing the Value of Companies' (McKinsey & Co.) OR 'Damodaran on Valuation' (Aswath Damodaran)
Reading the shareholder letters of Buffett won't hurt. Other people who've written good letters are Nick Sleep, Terry Smith or François Rochon. The books written by Peter Lynch are interesting too (and make great motivation for those starting), but not all that necessary.
>The Intelligent Investor
I heard that this book is pretty much the Bible of investing and a bit too difficult for beginners? Can you read it after reading the other two?
The best thing for you to do is put it all in a low cost ETF and completely ignore it except when you need to buy things. Then when you get older gradually start moving the money into bonds so you can have a more stable income. Unironically you will do better than 99% of investors
Why wouldn't you continue with ETF if it's giving you high returns? Csn bonds survive recession?
Bonds tend to do better during recessions, yes. And as you get older you’re going to rely on your financial assets more so you’re going to want something more stable. If you retire and have everything in ETFs you can lose it all during a bad year
If you’re young it makes sense to invest more in ETFs. You have more time to let them compound, even if there’s a bad year you can always compensate for it by working more. That becomes less viable the older you get
I used to pick stonks for a living (buy-side equity analyst). Heed this
Unless you do it as a career, you simply do not have the time or the access to information required to beat a broad-market ETF.
Even with a Bloomberg terminal subscription ($27k/yr) giving you all the data you could ever want, an all access pass to every companies investor relations department to answer any questions, etc. you STILL will barely manage +1-3% above your benchmark if you are good.
Also pretty good advice. The best investments I have made were buying out of favor, cheap stocks at a steep discount and waiting for the market to reevaluate them. There is a "rational" way to do this. Michael Burry style "deep value" investing is essentially this - finding out of favor, but financially healthy companies that you can buy at a steep discount, and hoping the market reevaluates. The problem is that you are wrong a lot of the time, so you need to cast a wide net (invest in a basket of companies) and be disciplined with your risk management.
This is a list of good books, but don't read these and delude yourself into thinking you are ready to pick stocks. Understanding the concepts of "value", "competitive advantages", "market positioning", "discounted cash flows" are all super good, but they are the bare essentials. I don't know if I've met an investors in a long time that is actually taking this approach in modern portfolio management.
And always remember:
"Time IN the markets beats timing the markets." -> Stay invested in a diversified portfolio and add to that position regularly
"The market can remain irrational longer than you can remain solvent." -> Risk management is where investors are made or broken
>cheap stocks at a steep discount
How do you do that? Do you pick a lot of them and hope some of them give you high returns? Or do you carefully choose just a few?
if markets actually functioned then you would wait for a crash, but the central banks will never give you one, so you just have to buy at the top and keep buying at the top forever, while pretending you're getting a discount
Rational investing? You couldn't possibly misunderstand more. Investing is more about psychology than anything else. You need to predict what the herd is going to do before they do it. You need to figure out the difference between what a stock is really worth and what the herd thinks it's worth, and play the difference. And so on. My point is, when it comes to investing, put rationality out of your mind completely.
It's a good thing some stone dudes were all calm and stuff 2,500 years ago so I don't have to shit the bed when my dog coins lose me the $250 dollars I was going to by a new bong with here in Columbus Ohio, Year of Our Lord 2024.
>thinks the stone age was 2500 years ago
baka
the stone age is still ongoing just look at north sentinal island
Is f&o trading worth learning about? Or can you ignore it?
Stoicism has nothing to do with trying to gain externals.
Investing isn't real. The stock market and shitcoin market are casinos and an 'investor' is no better than the drunk passed out in his chair at the video slot machine. You can make money with luck or if you turn it into your career but don't be deluded about what you're doing.