I chose to read this book because I have interest in financial systems and long term investing. Being that I have personal experience in the positive results long term investing can bestow upon those in life, I am taking more time to nurture my understanding. My goal is to be able to manage my own portfolio proficiently enough to not need support from professional management, and be able to teach my kids to ensure generational wealth.
A brief overview of some reminders that can be taken away from this book are: Don’t overestimate the skill and wisdom of professionals. Take advantage of what you already know. Look for opportunities that haven’t yet been discovered and certified by Wall Street-companies that are “off the radar scope.” Invest in a house before you invest in a stock. Invest in companies, not in the stock market. Ignore short-term fluctuations. Large profits can be made in common stocks just as large losses can be made in common stocks. Predicting the economy is futile. Predicting the short-term direction of the market is futile. The long-term returns from stocks are both relatively predictable and also far superior to the long-term returns from bonds. Common stocks aren’t for everyone, nor even for all phases of a person’s life. The average person is exposed to interesting local companies and products years before the professionals. How to make sense of earnings reports. Finding the intrinsic value of a company. Six inventive ways to categorize stocks. Having an edge will help you make money in stocks. In the stock market, one in the hand is worth ten in the bush.
Upon reentry I plan to use what I learned from this book and other stock books I have read to make more composed decisions in the stock market with more understanding. If I am investing in a strong business I have no reason to be worried. Understanding why I am investing in a company and why it’s a good investment will make me more confident in holding or selling a security through the volatility of the market. Hopefully by not paying advisory fees I can retain more profit that I will roll back into my account increasing the compound interest collected over time. With strong strategies, journaling to track progress, and checking to make sure I’m following the strategies I’m hoping to develop a solid format for accumulating long-term wealth.
