The Intelligent Investor

There are many different methods of investing - and I've experimented with quite a few of them (fundamental, technical, statistical, quantitative, machine learning, etc.).

Ultimately, I believe most trading techniques work until they don't. 

I don't believe that any technique always works ... but I do believe that there is always something that works. 

Likewise, I believe that there is always a best next step.

Evolutionarily, the strongest or smartest doesn't necessarily survive ... The quickest to adapt and adjust to its changing environment is the one that gains advantage.

Consequently, it makes sense to be on the lookout for sources of new learning (even if they are old).

In the same way that reading news from an opposing slant can inform your decision - studying other beliefs may help you find the underlying truths (or spark the insight you needed).

Warren Buffet is a famous value investor. He does immense research on companies, attempts to buy them at a discount and then hold on to them for long periods of time.  On some levels, our approach to the markets is radically different.  On the other hand, it would be crazy to ignore the brilliance of what he "knows" and what he does.

One of his favorite books on investing is titled The Intelligent Investor by Benjamin Graham. It's a great introduction to the basics of value investing (versus speculating) and the role of inflation, margin of safety, etc. 

It's worth a read ... but if you want to watch a good summary, here's a six-minute video. 

 

via Financial Freedom

If you aren't learning, you're dying.