As you travel along you investment path, there is one book that is absolutely Epic. arguably the holly grail of investment books. It's not the first book you should read. it was first publishes in 1943, and its 725 pages of pure hell. It's dry, it goes into minute detail but it's about understanding value.
A much easier read would be "the intelligent investor" by Ben graham. I'd read that first. it teaches you the what but not the how.
"Securities analysis" by Ben graham and David Dodd Is the book I speak of. It teaches you the how. The discipline it must have taken to write is insane. But the discipline it will take you to read it... crazy. If you know nothing about interpreting financial statements, you will know everything.
Yes it was written in 1943, irrelevant? Certainly some things don't apply now, but most things still apply. Moreover, this book teaches the discipline required to perform due diligence on a business before you buy it. No click bate, no ten best stocks to buy today, no why did xyz stock plummet 5% today.
It will be a very hard read. I've owned a copy of securities analysis for over 3 decades. Read it more times than I can recall. But every time I fail in my due diligence because I overlooked something, I go back and re read that book.
Sadly today most people seek instant gratification. they seek entertainment over fact. I call it the Kramer effect. That TV presenter is an idiot, or not? He seeks ratings, that's his driver. investment Advice is not in his wheelhouse, he's a monkey pushing buttons when told to and reading off a teleprompter spouting out the nonsense that other people have told him to say.
Little wonder most people loose money investing in stocks. No discipline! Securities Analysis will teach you the fundamentals and the discipline required to be a successful investor.
So here is my challenge to all my tiger friends... buy the book and read it, slowly. to be fair, it's definitely better to read books by warren buffet and Ben graham first. Then go back to David Dodd, the godfather of value investment.
As always I'd love your comments. I've set down a huge challenge. securities analysis is going to be the hardest read you will ever have. Am I right, or was it easy? Thoughts
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