Misunderstanding of price and value. The difference between price and value is the first lesson for all investors. As I said in section 5-2 of the book “The Rules of Super Growth Stocks Investing”, most people incline to buy penny stocks, thinking that low-priced stocks have more room to rise in the future and are less risky. In fact, the risk is relatively high.
Category: Benjamin Graham
Problems with Cigar Butt Investment
Cigar Butt Investment. Most investors who have a little research on Buffett may know that Buffett used his own investment in the early stage of his investment career, especially during the Warren Buffett partnership that had not yet established Berkshire (ticker:s: BRK.A and BRK.B), is his mentor Graham’s “Cigar Butt Investment Method” means:
How difficult to be out of the ordinary
How difficult to be out of the ordinary, We begin this article with a famous quote from Mark Twain: “Whenever you find yourself on the side of the majority, it is time to reform, pause or reflect.” This is even more true in the stock market.
Retail investors’ wrong investment concept not worth trying at all
Investment concept not worth trying at all
Non-quantitative factors determine success or failure of an investment
Non-quantitative factors determine success or failure of an investment. People overemphasize the importance of science and numbers in investment, as I mentioned in the book “The Rules of Super Growth Stocks Investing”, section 1-1. Investment is a not a science but an art in the economic field under sociology, which is more related to humanities
The past and present of value investing
The past and present of value investing. A few days ago I published “Why I prefer growth stocks instead of value stocks?” In the article, based on readers’ responses, I think I still have to clarify my views on value investing to readers.
“One Up on Wall Street”, Peter Lynch’s great book for investing newbie
One Up on Wall Street. This is a book I often recommend “Primer books for investing in the Stock Market”, and the self-preface of the book is well written. The reasons to recommend Peter Lynch’s book “One Up on Wall Street” are as follows: