Intelligent Investor(Graham, Benjamin)

 1. Become an investor, not a speculator.


Investment is an act of receiving the promise of safety of principal and sufficient returns through thorough analysis. If this requirement is not met, it is speculation.

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Most people who trade stocks are called investors, but Benjamin Graham says this is wrong.

You must understand that speculation and investment are clearly different. If you become good at just buying and selling, you are making a fortune for the brokerage firm, and if you suffer losses, there is a high probability that your choice of company was wrong.

In the end, whether it is speculation or investment seems to be determined by how much you analyze and study the company when making the choice.

I also think that being too greedy or just trying to make money easily is speculation.

I think that everything comes with a price.

Even if you study investment, studying speculation and studying investment are different.

For example, let's say you decide to invest in one stock.

Then, even if you start with the question of when to buy and sell this stock, there are a ton of things to study.

However, if the purpose is speculation, you will buy and sell only based on the instructions of others or insider opinions.

You are not studying the company, but the opinions of others.

I hope that everyone will invest by distinguishing between true investment and speculation.


2. Find out for yourself rather than relying on others.


In the end, each person must make their own judgment and take responsibility for it.

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People invest to make money, so asking for investment advice is like asking for information on how to make money. It is a naive thought.

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A while ago, a friend asked me where I heard about stocks and how I do it.

I asked him what the purpose of stocks is, and he ended up saying it is to make more money.

So I told him that he should first learn about money and introduced him to books related to money. Of course, I didn't know anything at first, just like my friend, and I relied on others, and I bought stocks that others told me about.

After going through many trials and errors, I have now become a long-term investor and have completed my own investment method.

I felt burdened by the stock window I see every day, and I didn't want to waste time for small profits since I'm not a full-time investor.

So the thing that helped me the most was books.

So I just hope that my friend will read books and study as soon as possible without following my procedures, and complete his own investment method.

It's hard for me to stick to my own investment method (principles).

However, I think it's important to keep trying to overcome.

Since humans can't predict the future, they can't always buy at the low and sell at the high.

All choices are yours, and regardless of who recommended it or what you thought, the money you invest in a company is yours, so I just hope that you don't do it like speculation.


3. In the case of a big investment or business, be aware of your own situation and have a solid analysis and drive.


Understanding Your Business

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Do not arbitrarily entrust your business to someone else unless the following two conditions are met. "(1) You must be able to fully understand and supervise the performance of the agent, and (2) you must have a solid basis for believing that the agent is competent and honest.

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You should not start a business unless you can clearly calculate that you can expect reasonable profits.

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You should courageously utilize your knowledge and experience.

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If you are going to do business/investment, etc., you should have the above thoughts and put them into practice.

These days, tang-hulu restaurants are trendy, and it is said that you can make a lot of profit if you open a four-cut life, etc. There are many commercial areas and popular items around you.

If you go back in time, there were popular items such as self-service ice cream, PC rooms, and doll grabbers, depending on the era. I think you have seen and remember many cases where businesses failed after following the trend.

The profits and losses (management fees, rent, labor costs, equipment costs, maintenance costs, etc.) that occur when starting a business, etc. It is necessary to think about it, and since it costs a lot, thorough analysis and driving force are required.

The same goes for investments. If you invest in a certain company, why did you choose this company?

What will the future outlook be? Looking at recent and past financial statements, what are the profit or loss situations? Is it a situation that could become a social issue? You have to look at many things, and ultimately, you have to figure out why you chose this company and why.

For example, Nvidia has skyrocketed, and I think there are many people who are speculating blindly to make a profit.

Of course, there are many stocks that are greatly influenced by politics/society/environment and that rise and fall sharply, and there will be many people who follow them.

Also, there will be many people who invest because someone said this stock is good or because they are insiders and will definitely rise sharply.

However, if you invest like that, it is not a reflection of your own opinion or thoughts, and I think you are speculating rather than thinking about it and buying it.

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