4 ms·
I’ve been investing for a long time. Biggest key: open an account, add money, and buy something. You will rapidly learn what works, what doesn’t, what drives pr
by elamje 6y ago
I’ve been investing for a long time. Biggest key: open an account, add money, and buy something. You will rapidly learn what works, what doesn’t, what drives price etc.
Reading financial statements is a good exercise and certainly important if you are investing at the institutional level, but you’ll find that price has a lot more to do with supply and demand of investors who want the stock than anything else.
This supply and demand principle in economics is oft lost in investing principle books that try to teach theory of valuation, etc.
Assuming you are into tech, since you’re here, you will find that tech stocks will barely reflect what an investing value book would teach. Possibly even teach valuations that are off by orders of magnitude due to the money being thrown at tech growth stocks.
Price doesn’t equal valuation until you are trying to sell.
- elamje 6y agoIf you are still looking for books, Margin of Safety is good. Intelligent Investor (though very outdated) is good. Jack Bogle stuff is good . Read annual LP memos from hedge funds and institutions like endowments and pension funds. They are throwing around big money and it’s fun to see what they think about. Some good memos - Baupost Group, Berkshire Hathaway, Howard Marks. Email me if you want any more info.