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Marks shared on 20 most important things.
I like the first on: Second-Level Thinking.
First-level thinking says, "It's a good company; let's buy the stock."
Second-level thinking says, "It's a good company, but everyone thinks it's a great company, and it's not. So the stock's overrated and overpriced; let's sell."
First-level thinking says, "The outlook calls for low growth and rising inflation. Let's dump our stocks"
Second-level thinking says, "The outlook stinks, but everyone else is selling in panic. Buy!"
The second level thinker takes a great many things into account:
1. what does the consensus think?
2. how does my expectation differ from the consensus?
3. how does the current price for the asset comport with the consensus view of the future, and with mine?
4. is the consensus psychology that's incorporated in the price too bullish or bearish?
5. what will happen to the asset's price if the consensus turns out to be right, and what if I'm right?
To outperform the average investor, you have to be able to outthink the consensus.
Are you capable of doing so?
What makes you think so?
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I just bought this week over the last weekend, and am reading it through slowly.
A very good book, he writes extremely well and is very articulate!
I like that he devotes three chapters to risk - identifying it, assessing it and controlling it.
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My friend loaned me the Illuminated version and I started reading it. Good book thus far.
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the book is available on NLB.gov.sg Eresources Overdrive e-book.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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11-11-2013, 12:33 PM
(This post was last modified: 11-11-2013, 03:59 PM by CityFarmer.)
I have this book in my Kindle.
[removed by moderator]
Value.able [Kindle Edition]by Roger Montgomery too. if anyone's interested.
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11-11-2013, 04:05 PM
(This post was last modified: 11-11-2013, 08:48 PM by CityFarmer.)
(11-11-2013, 12:33 PM)honeyclover Wrote: I have this book in my Kindle.
[removed by moderator]
Value.able [Kindle Edition]by Roger Montgomery too. if anyone's interested.
I am not sure the digital book can be freely distributed, thus I removed the link.
If it can, then please post the link from source. Thanks
Regards
Moderator
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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Just borrow digital version from NLB.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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