Investing is something that most people are afraid of.
I mean I can remember when the 2008 financial crisis happened and people were worried about their jobs and survival. Being young during that time, left an impression.
Over the last 10 years though, I’ve learned a lot more about investing and was always curious what made the best investors so good at it. This book was able to demystify some of that for me.
The book went through 10 of history’s best investors and the author’s interviews with them.
Some key takeaways:
- Sometimes people are just built to be good at things. I’ve heard, 50% of who we are comes from our genes and the rest is how we adapt to the environments we are grown in. These investors are like the LeBron James of basketball who have reached their full potential.
- Value investing is the best way to go because you aren’t chasing large growth but playing on the value the companies have for growth. This type of investing is aimed at reducing the downside risk and increasing the upside potential.
- Many of these investors don’t pay attention to the news until many days afterward.
- To beat the marketing, you need to bet differently than the general population and the average investors. So you need to think outside the box at what people aren’t already doing.
- When investing, they do insane amounts of research to the point where some end up living in the countries they invest in and meet with companies multiple times. Something the average investor doesn’t have the time or capital to do.
- You need to understand who you are and your temperament, and then find an investment strategy that matches that.
After reading this book, I realized I don’t have the time or skills developed to pick stocks correctly. So I’ve changed my strategy to focus on index and mutual funds.
This way I follow with the market and let the people who have dedicated their lives to this handle it.
Note: This is not investment advice, please do your own research before investing your money into anything.
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