2021 from the beginning of the year suspected of “big time”, to the current “bored to faintness”, investors still have to earn is certainly worth happy, but if things do not go as expected, but also to know why investment loss more win less?
As early as May 1984, the “God of Stock” Warren Buffett has made his investment philosophy known to the world. At that time, he gave a speech at Columbia Business School to explain his investment philosophy, entitled “The Super investors of Graham-and-Doddsville” (The Super investors of Graham and Doddsville).
Benjamin Graham (1894-1976) is known as “the father of stock analysis and the godfather of Wall Street”; David Dodd is a scholar at Columbia University, both advocate value investing and co-authored the book “Stock Analysis”.
Warren Buffett wrote: “Graham and Dodd share the wisdom of being able to find the difference between the value and price of a business in the market.” Thus, when Buffett invests, he never considers buying a stock, but an industry that is worth investing in when its value is at a distance from its actual price.
He points out that top-performing investors, like Graham, don’t care when they buy a stock, or worry about the price going up or down, because these investors are “industrialists” who buy industry, not “businessmen” or “speculators” who buy stocks. “speculators”.
Warren Buffett said that this secret has long been shared with everyone, but also from 1984 before the practice, only few people in the market believe that we only chase short-term profits.
Warren Buffett loves these 4 financial books to “God of Stock” teacher to learn investment].
Perhaps, Warren Buffett is the object of many investors, everyone expects to learn his investment wisdom, Compaq tea company Better Booch founder Trey Lockerbie has revealed that a few years ago asked the God of stocks about investment, and shared four books recommended to him by Warren Buffett.
Lockerbie said that when he asked Buffett if the book written by Benjamin Graham, the “father of value investing,” was outdated, Buffett suggested that he reread Graham’s book and focus on the chapter paragraphs about the psychology of investing. Buffett also suggests that reading the 2 books written by the late economics commentator George Goodman (George Goodman) under the pseudonym Adam Smith will help in learning about investing. The following is the list of books recommended by Warren Buffett.
- “Securities Analysis” (Security Analysis)
This book, written by Graham and scholar David Dodd, focuses on the decision-making basis of the value investment method, that is, the operating principles of buying and holding stocks for a long time. The book explains that “the act of investing is to earn a safe return with the promise of a safe principal, and anything less than this guideline is speculation.” This book had a great impact on Warren Buffett, and Graham was Buffett’s enlightening teacher.
- “Intelligent Stock Investor” (The Intelligent Investor)
Warren Buffett has recommended this book several times, writing in a 2013 letter to Bartshire shareholders, “My financial life has changed because I bought The Intelligent Stock Investor.” This book, written by Graham and financial journalist Jason Zweig, delves into the philosophy of using value investing strategies.
- “The Money Game” (The Money Game)
This book was published in 1968 by Goodman under the pseudonym Adam Smith, with the crazy story of Wall Street in the 1960s as an example of the stock market as a game. Warren Buffett has pointed out that in The Money Game, Goodman’s insight is amazing. He knows how to touch on truths that he has never recognized before, and he stays true to the facts while also making them interesting.
- Supermoney
Goodman’s 1972 work portrays the stock market speculative frenzy of the 1970s and mentions the then-obscure fund manager Warren Buffett.
Who is Graham?
Graham (1894-1976) is known as the “Father of Securities Analysis”, the “Godfather of Wall Street”, and the founder of “Value Investing Theory”, whose status in the investment world is equivalent to that of Einstein in the physics world. His status in the investment world is equivalent to that of Einstein in the physics world. Warren Buffett once said that top-performing investors must be like Graham, not caring about when to buy stocks or worrying about stock prices going up or down, because these investors are “industrialists” who buy industry, not speculators. So, who is Graham?
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● Graham’s origin
Graham was born in 1894 to a British family that had failed completely in business and investing. He lost his father at the age of 9, which directly led to the bankruptcy of the ceramics business run by the Graham family. By the time he was 13, his mother had not only lost all her savings in U.S. Steel stock, but was in huge debt!
However, Graham did not give up on himself because of his hardships. Instead, he relied on the money he earned from his part-time job and struggled to finish his degree from Columbia University. In those days, that degree meant a well-paying job and a bright career.
In 1914, he graduated from college and chose to take a minimum wage job at the New York Stock Exchange, thus beginning his legend on Wall Street.
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The Road to Wall Street
At the end of 1934, after 20 years of work experience, Graham completed his book “Securities Analysis”, thus establishing his immortal status as the “Master of Securities Analysis” and the “Godfather of Wall Street”.
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The “Godfather of Wall Street
In the book, Graham mentioned that as a successful investor should follow 2 investment principles: 1.
- Strictly prohibit losses
- Don’t forget the 1st principle
According to these 2 principles, he proposed 2 safe stock selection methods: 1.
1, if the company’s net asset value discount of 2 / 3 or more, to buy
2, buy stocks with low P/E ratio
At that time, the book became a must-read for people in the financial and investment community.
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