On World Book Day 2022, sharing some books which are worth reading and including 2 key points each book and what the book teaches:
The Intelligent Investor (by Benjamin Graham)
1. Market can be overly optimistic or pessimistic at times, use the true value of the company to evaluate to find opportunities of skewed risk and reward.
2. Use a Margin of Safety to minimize risk.
Teaches that the market is not always right, and to catch opportunities while leaving some space for error.
Poor Charlie's Almanack (by Charlie Munger)
1. Have as many tools in the toolbox as possible, some problems may need multiple tools to solve effectively.
2. Investing checklist which evaluates your own frame of mind before getting into an investment.
Teaches that it is also important to focus on yourself when making investing decisions.
The Alchemy Of Finance (by George Soros)
1. Reflexivity is a self reinforcing loop which causes views to overshoot equilibrium repeatedly.
2. Wrong conclusions from past events may lead to creating a model which is faulty, having no model may be better than using a faulty model.
Teaches that the market is always changing and having no fixed strategy may be a good way to approach it.
One Up On Wall Street (by Peter Lynch)
1. How to categorize stocks and identify potential tenbaggers.
2. Individual investors have an edge by investing in what they know and has lesser restrictions compared to big funds.
Teaches that individual investors can also outperform funds.
Rich Dad Poor Dad (by Robert Kiyosaki)
1. Focus on assets, dont focus on income. Learn to differentiate assets from liabilities.
2. Importance of personal finance.
Teaches how to handle money outside of investing and to put them in the right place.
The Richest Man In Babylon (by George Samuel Clason)
1. Wealth is not about income, it is about spending below income.
2. Passive income, money works without rest and compounds.
Teaches the importance of controlling spending and using the money to increase income.
Antifragile (by Nassim Taleb)
1. How to handle negative and random events and grow stronger from them.
2. Green Lumber Fallacy where focus is wrongly put on non-relevant information instead of important information.
Teaches a good mentality to face trading with and overcome bad events to grow into a better self.
Hope these books helps other investors too.
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