Warren Buffett is world's most successful investor in this century , Mr Graham was his guide and teacher to accomplish such a fortune within 50 years with his current Net worth Appx 74 Billion USD , despite he has donated more than US$28 billion in last 10 years .
I have started reading his book today a chapter a day .there are 20 chapters in this book , this book is considered to be one of the best book written on investing principle in recent past .will be highlighting the points which drown my attention while reading this book to benefit entire community member .
Main points of the book-
- Investments has to be separated form speculations .
The difference between the 2 follows - An investments operations is one which , upon thorough analysis promises safety of principle and an adequate return .operations not meeting this requirements are speculative .
- Their are Intelligent speculations as there are intelligent investing , but their are many ways where speculations may be unintelligent
- Speculating when you think you are investing
- speculating seriously instead of as a past time .when you lack proper knowledge and skill for it
- risking more money in speculations than you can afford to lose.
- In speculations only the risk is exchanged ( but never eliminated )
Every time a stock is bought or sold , the buyer purchases the primary risk that this stock may go down , meanwhile , the seller still retains a residual risk - the chance that the stock he just sold may go up .
- Speculation or gambling is always fascinating .
both Speculation and gambling is always fascinating and it can be a lot of fun while you are ahead of the game .
- We should lean to buy cheap and sell dear , instead of buying at low price and selling it at high price .
it is simple we can understand the cheap and dear by a proper analysis only , low and high price is is only on charts we need to understand it .
** Commentary on chapter 1)
All of human unhappiness comes form one single thing; not knowing how to remain at rest in a room ._ Blaise pascal .
Before buying any stock we should do below things -
- We must thoroughly analyze a company / Project , and the soundness of its underlying business , before we buy its stock.
- We must deliberately protect ourself against serious losses
- we must aspire to "adequate "not extraordinary performance .
My Inputs for our highly motivated cryptocurrency investors / Traders/ Speculators inline with this book .
- Before buying any Token, Coin, ICO we must thoroughly analyze a company / Project ,and the soundness of its underlying business , we should not just jump into the project as it has grown 500% in last couple of months .or only on the basis of looking at chart .
- At any circumstances we should not make big losses , we have to have a proper protection plans to avoid big losses .
- we must aspire a adequate a good return but just should not have a insane thought of making fortune withing 6 month or a year .
In the book it is written that in 1990's because of confusing speculations with investments appx 1 million people were trading on Wall street knowing nothing more than a catchy code of stocks ticket symbol .- i think this is the same situation we have currently with cryptocurrency market we just know nothing more than a symbole of the tokan and coinmarketcap graph.
Know refering this book i can surely say anyone just following in above category will not be able to achive their long term financial goals , hence my request we shoul know the basic tips of investing which made worlds biggest investor .if anyone not willing to follow tips step by step he should must have these points incorporated in their trading and investment strategy .
Please don't make cryptotrading worlds national video game.
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