20-12-2016, 10:35 PM
Happy investing as this definitely be a rewarding journey to your financial freedom.
I dream/found out very early part of my career that in order to retire,
I need my $$$ to work harder than me.
Dream on:
One characteristics of valuebuddies is we prefers reading than going for investment courses.
So, "The Intelligent Investor" written by Benjamin Graham is definitely a must read.
It's good that you're reading the book slowly page by page.
To be fair, not many valuebuddies able to read thru the whole book.
Imagine my joy when I discover (and introduced) a 100 pages summary in this
post in vb.com it's a NLB book too.
If you can read the 100 pages summary, you would end up to be better read
than most valuebuddies.
Now, you asked:
If our dear valuebuddies do not *dig deep* into "The Intelligent Investor",
then why did they kept recommending this difficult to read book?
Ans: only 2 chapters must digest or (for some vb burn and drink):
1. chapter 20 - MOS (Margin of Safety) and
2. chapter 8 - Mr Market (and fluctuation)
You can read the essense of these 2 important chapters from this
link
but, I can give it to you quickly.
Chapter 20, MOS is the discount that I get when I *brought* a stock.
The more MOS, the better discount and *value* I got.
A very common question on when do I sell a share?
(and its twin question):
After I brought a stock and its price drop further, do I sell or buy more?
CF gives the model answer using MOS.
aka, if you truely believed that your stock is good and brought it with a MOS.
if the price drop further, you should consider buying more
aka the MOS had become wider (assume no changes to fundamental)
Chapter 8, describe Mr Market who has extreme mood swing.
Everyday, he will ask you to buy or sell shares at a price,
reasonable or not, he don't care.
It is up to you to determine whether his offer meet your MOS target.
Most of the time, we will ignore him.
Once or twice a year, we will pick up some deal.
And, of course, this is not for the feign hearted.
Only extremely patient valuebuddies will be able to do this diligently.
I, myself, deviated as I have itchy fingers.
I applied the late oldman (Michael Leong) practise and
is trading happily with tikam $$$.
The trick is to know/tell which stock is speculative and which stock is investment.
erh... chapter 1 Investment vs Speculation (chapter bonus if you read so far)
Another characteristics of our valuebuddies is surprisingly FA+TA.
Very very seldom we see a FA only conversation.
Somehow or rather, TA is fashionable in choosing the entry point of a stock.
Personally, I don't really use TA except the most simplest form
1. MA/EMA and
2. support/resistance
Wish everyone a Merry Christmas and Happy new year.
Love Compassion
I dream/found out very early part of my career that in order to retire,
I need my $$$ to work harder than me.
Dream on:
One characteristics of valuebuddies is we prefers reading than going for investment courses.
So, "The Intelligent Investor" written by Benjamin Graham is definitely a must read.
It's good that you're reading the book slowly page by page.
To be fair, not many valuebuddies able to read thru the whole book.
Imagine my joy when I discover (and introduced) a 100 pages summary in this
post in vb.com it's a NLB book too.
If you can read the 100 pages summary, you would end up to be better read
than most valuebuddies.
Now, you asked:
If our dear valuebuddies do not *dig deep* into "The Intelligent Investor",
then why did they kept recommending this difficult to read book?
Ans: only 2 chapters must digest or (for some vb burn and drink):
1. chapter 20 - MOS (Margin of Safety) and
2. chapter 8 - Mr Market (and fluctuation)
You can read the essense of these 2 important chapters from this
link
but, I can give it to you quickly.
Chapter 20, MOS is the discount that I get when I *brought* a stock.
The more MOS, the better discount and *value* I got.
A very common question on when do I sell a share?
(and its twin question):
After I brought a stock and its price drop further, do I sell or buy more?
CF gives the model answer using MOS.
aka, if you truely believed that your stock is good and brought it with a MOS.
if the price drop further, you should consider buying more
aka the MOS had become wider (assume no changes to fundamental)
Chapter 8, describe Mr Market who has extreme mood swing.
Everyday, he will ask you to buy or sell shares at a price,
reasonable or not, he don't care.
It is up to you to determine whether his offer meet your MOS target.
Most of the time, we will ignore him.
Once or twice a year, we will pick up some deal.
And, of course, this is not for the feign hearted.
Only extremely patient valuebuddies will be able to do this diligently.
I, myself, deviated as I have itchy fingers.
I applied the late oldman (Michael Leong) practise and
is trading happily with tikam $$$.
The trick is to know/tell which stock is speculative and which stock is investment.
erh... chapter 1 Investment vs Speculation (chapter bonus if you read so far)
Another characteristics of our valuebuddies is surprisingly FA+TA.
Very very seldom we see a FA only conversation.
Somehow or rather, TA is fashionable in choosing the entry point of a stock.
Personally, I don't really use TA except the most simplest form
1. MA/EMA and
2. support/resistance
Wish everyone a Merry Christmas and Happy new year.
Love Compassion