What is so interesting about investing?
Investing is a art, rather than science, to identify the investment opportunities. We all should give our thanks to Benjamin Graham, who provides us investment philosophy and simple-to-use investment tools.
Benjamin Graham was so responsible that the readers of 'The Intelligent Investor' and 'Security Analysis' books would acquire and apply the knowledge that will not fail them big time. That is what many authors and analysts fail to do so. It is important to be conscious of what you are writing because some of your readers may use it - It is either to succeed well or to fail big. This strongly reflect my belief that one action made by you will directly and indirectly cause many actions caused by other people.
From these books, I could see that he was intelligent to create investment philosophy and tools in the era of zero body of investment knowledge other than technical analysis. I am grateful enough that some authors (one of them is Jason Zweig) publish the old articles written by Benjamin Graham on their books. I was shocked and surprised to see so many interesting ideas and complex investment discussions. By then, he was so intelligent, beyond our imagination in investing context.
One trait any investors should have is to improve themselves constantly. Before he wrote Security Analysis book, Benjamin Graham did lose money big time during the great depression as per biographies. Benjamin Graham kept on improving his investment methodology until he don't lose big time with great certainty. It is no surprise that Warren Buffett and Charlie Munger improve their investment methodology from undervalued stocks to stocks with moat.
It is no doubt that popular tool has found no usefulness when a lot of people with the same tool reduce the excess (hidden) return on the stocks. You have to wait until these people are giving up. That is when you will use the popular tool again. Warren Buffett couldn't find the bargain based on Graham criteria in 1970s. He came out with new investment style, managing Berkshire Hathaway's money. It was known that Warren Buffett found cheap Korean stocks with Graham criteria in late 2000s.
Martin Whitman improvises Security Analysis with different viewpoint and lens. Anyone should consider the same valuations from different viewpoints. You will get the light bulb in your mind one day if you are committed to scrutinize the investing stuffs. Philip Fischer provide alternative way to identify investment opportunities apart from Graham.
Life experience does define your investment process. Bad experience from making huge loss during great depression made Benjamin Graham very selective. On John Train's book (if I am not wrong), Benjamin Graham rejected many recommendation from his analyst. My current life experience put me where I want to care for the people's venture into investing although there is a risk of me being misunderstood.
I like investing because you can succeed regardless of your IQ and who you are. Most of the time, reward often exceed or equate to your effort of doing investment analysis.
The bottom line for us is that we keep on trying until we succeed. We need to remember useful quote from Benjamin Graham:
Benjamin Graham was so responsible that the readers of 'The Intelligent Investor' and 'Security Analysis' books would acquire and apply the knowledge that will not fail them big time. That is what many authors and analysts fail to do so. It is important to be conscious of what you are writing because some of your readers may use it - It is either to succeed well or to fail big. This strongly reflect my belief that one action made by you will directly and indirectly cause many actions caused by other people.
From these books, I could see that he was intelligent to create investment philosophy and tools in the era of zero body of investment knowledge other than technical analysis. I am grateful enough that some authors (one of them is Jason Zweig) publish the old articles written by Benjamin Graham on their books. I was shocked and surprised to see so many interesting ideas and complex investment discussions. By then, he was so intelligent, beyond our imagination in investing context.
One trait any investors should have is to improve themselves constantly. Before he wrote Security Analysis book, Benjamin Graham did lose money big time during the great depression as per biographies. Benjamin Graham kept on improving his investment methodology until he don't lose big time with great certainty. It is no surprise that Warren Buffett and Charlie Munger improve their investment methodology from undervalued stocks to stocks with moat.
It is no doubt that popular tool has found no usefulness when a lot of people with the same tool reduce the excess (hidden) return on the stocks. You have to wait until these people are giving up. That is when you will use the popular tool again. Warren Buffett couldn't find the bargain based on Graham criteria in 1970s. He came out with new investment style, managing Berkshire Hathaway's money. It was known that Warren Buffett found cheap Korean stocks with Graham criteria in late 2000s.
Martin Whitman improvises Security Analysis with different viewpoint and lens. Anyone should consider the same valuations from different viewpoints. You will get the light bulb in your mind one day if you are committed to scrutinize the investing stuffs. Philip Fischer provide alternative way to identify investment opportunities apart from Graham.
Life experience does define your investment process. Bad experience from making huge loss during great depression made Benjamin Graham very selective. On John Train's book (if I am not wrong), Benjamin Graham rejected many recommendation from his analyst. My current life experience put me where I want to care for the people's venture into investing although there is a risk of me being misunderstood.
I like investing because you can succeed regardless of your IQ and who you are. Most of the time, reward often exceed or equate to your effort of doing investment analysis.
The bottom line for us is that we keep on trying until we succeed. We need to remember useful quote from Benjamin Graham:
"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."
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