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Intelligent Investor

seems like everyone are going crazy over the latest financial havoc..
good thing i am not in banking.
the only investment book i have ever read (and not finished) is 'intelligent investor', written by the so-called warren buffet's investment guru.

written by the guru of the richest man around, it's surely worth reading.

if you'd only want to read one book on investment, then probably you could consider this one.

if you notice the investment tips on the MRT lately, most of the points are mentioned in the book, if not all.

when i read books or listen to people (incl sermon), i always look for the defining punch-line that hits me hard.

the book afromentioned (what an outdated bombastic word), teaches me few simple stuff that hits me hard and change my way of treating my unitrust from then on.

first of all.. investors are not speculators.. those who buy at the sign of low point and sell at the sign of high point are speculators. and when such action is not based on sound research and analysis.. you are as good as throwing your money into casino.

investors study the good companies or fund to invest in, and then put their money in with long term view.

don't overestimate yourself. most likely, you are not smarter than the market, you know not more than the rest of speculators. i tried to bring this point across to my uncle but he thought he knew better, so yeah.. what to say?
he lost dearly but he still thought it was the price to pay for learning.

well.. its the price to pay for overestimating yourself.

higher risk higher return, true? NO, the book says. not necessarily. again, it maintains the importance of studying the market, doing your homework. if you do it well, you could minimise your risk and maximise your return.

but the most important points that i took from the book were
1. there's no shortcut to wealth. the best investment strategies are all about moderate return that accumulates overtime.
2. the financial world is also like our physical world.. it goes in cycle. nothing to worry, what goes up will come down, and vice versa.

so.. what's the big deal? (unless you are working for one of the victim companies) ^^

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