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Dear all,
Good video to watch to remind ourselves of the fundamental principles of stock investments. Fundamental principles which are often bypassed at our our peril.
https://www.youtube.com/watch?v=kyODxq_bT4o
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
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23-05-2015, 12:04 PM
(This post was last modified: 23-05-2015, 12:10 PM by vesfreq.)
Some important take away:
1. Only invest in what you understand.
2. Only invest with the money that you do not need for a "long time".
My personal take:
1. Never borrow to invest (unless you have the ability to pay back).
2. Contra trading is sinful.
3. Any form of risk taken must be calculated. Did you know that risk refers to the likelihood of gains and losses? Not just likelihood of losses.
4. The greatest enemy is yourself, not the market.
5. An intelligent investor need not have a phd, but has the patience to wait out the cycles and uncertainties.
6. Professional stock investors are like you and I normal folks in the street. That means we have every good reason to outperform the market.
7. Hearsay is dangerous, trust yourself first.
8. There is nothing shameful about starting small, but never forget the rule about "not losing money".
9. Exiting is always an option. If you can't beat the market, come back another day. Don't die today.
10. Loi Pok Yen (Chief Exec CWT) said "Don't worry about making a mistake, but don't repeat it." Its a very important rule to remember.
11. Believe in what you in invest. Thats how you gained conviction in what you invest in.
12. The best resources available without cost is yourself and your time. The other best tool/ invention (which is not free) in modern civilisation is the spreadsheet and that just costs a little bit.
13. The affairs of the heart is easier of entry than exit. Same goes for a failing business. But, its easier if you just let your rational mind do the job, than to let your heart do it. Its business and really nothing to do with emotions.
Happy trading.
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
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(18-06-2020, 01:11 PM)weijian Wrote: For Peter Lynch fans. 180+ pages and probably like a book.
Peter Lynch Articles For Worth Magazine
I wanted to share these articles with you. I believe that most investors are not even aware that they exist. I believe these articles could be a good addition to your knowledge base, if you have read the author's books. The articles provide a more real-time view of his investing thought process, as he was doing it, and without the benefit of hindsight.
You can download the articles in a PDF format by clicking on this link here: Peter Lynch Articles For Worth Magazine
https://www.dividendgrowthinvestor.com/2...azine.html
Thank you. Indeed, didn't know it exist; and a big fan of his books.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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