Reddit reviews Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions)
We found 35 Reddit comments about Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions). Here are the top ones, ranked by their Reddit score.
Edit corrected the years to nearly 70 from nearly 60. Did anyone else know it's 2016 and not 2006?
Realize that you always need to be learning and taking in new information. You will never "master" the market, nobody else has mastered it either, so take others' opinions with a grain of salt.
As much as people joke around here it can be a good way to spur new thought. If someone says the market will crash in 3 days? Why? Do you agree? If so, why? What data can you come up with to support that? (Etc, etc). Your goal should be to become knowledgeable enough to look at the economic landscape and come up with a personal opinion about what will happen next.
Once you have an informed hypothesis on what will occur then you make investments based on those convictions.
WSB Cheatsheet = www.3xetf.com
If you want to know how Warren Buffett invests just read "The Intelligent Investor" by Benjamin Graham https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661
After that read "Security Analysis" by Graham and Dodd. With these 2 books alone you will have a deep understanding of how to invest like Buffett.
TLDR: Benjamin Graham was Buffett's mentor, taught him how to invest, and wrote everything down in his books so that you can do the same. Also you could just buy BRK.B (or BRK.A if you've got the cash) shares and let Buffett do all the work for you.
Sub about Value Investing /r/SecurityAnalysis/
Some background info if you're interested... after Warren Buffett graduated from Penn he applied to Harvard for graduate school but was rejected and ended up at Columbia University instead. Ben Graham was one of his professors at Columbia. Graham was incredibly intelligent, he grew up poor in NYC and received a full scholarship to attend Columbia and by the time he graduated he was offered tenure as a professor in 3 separate departments (Mathematics, English, and Philosophy) but he declined those offers and went off to Wall Street instead where he was credited at the time for creating systems on how on invest based off of specific signals and criteria instead of blindly gambling in the market. Graham later returned to academia because he wanted to write a book on the investing techniques he created. This is when Buffett and Graham crossed paths at Columbia. Buffett studied Graham's investing style and it obviously worked out well for him, he credits Graham to this day as being his mentor and says he still reads The Intelligent Investor every so often.
If their stock dropped 61% because apple pulled out - they don't have a bright future. You sound like the kind of person interested in investing in coal.
Edit: Educate yourself: https://www.amazon.com/Security-Analysis-Foreword-Buffett-Editions/dp/0071592539
The past is not an indication of the future in investing. You are speculating, one of the worst things you could do as an investor - here, educate yourself some more: https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661
They've updated Security Analysis too.
Read these -
It's not hard to understand once you understand the driving principles. This dip/crash was predictable.
Securities Analysis by Graham is good too, also One up on Wall street by Lynch is another great one for investors.
Glad you read intelligent investor first.
Next is Ben Graham's Security Analysis
This book is really excellent and gets a lot more technical with the numbers.
If you don't want to make a career out of trading, a helpful rule of thumb is a 90 / 10 principle popularized by Andrew Hallam in his text Millionaire Teacher: Stick 90% of your capital in tax sheltered, virtually passive forms of investment like index mutual funds or ETFs with an IRA wrapper and stick the other 10% in whatever investment vehicle you want to learn.
For example, I put 90% of my capital in a batch of index funds and ETFs predicated on John Bogle's suggestion of "your age in bonds, the rest in common stock" index funds and ETFs by way of an account with Vanguard for my IRA and my company's 403(b) program. Vanguard makes this really easy through their target retirement funds, which automatically adjust the ratio of stock / bonds over time. I'm really interested in value investing; so, I take long positions in individual stock that meets the criteria Benjamin Graham identified in Security Analysis and The Intelligent Investor with the other 10% of my capital via a brokerage account with TD Ameritrade--this isn't tax sheltered like my retirement accounts but it's basically an ongoing education in investing since TD Ameritrade offers a ton of instructional materials on topics like options, commodities, etc. and I want to see my money grow.
Let's take a look at what this could look like for your situation. Starting with $5k and doing something like what I'm doing, you would:
Any follow up questions?
The Intelligent Investorand Security Analysis are not the same book.
Although a challenging read, this book is extremely helpful: Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions) https://www.amazon.com/dp/0071592539/ref=cm_sw_r_cp_api_i_iRlnDbSBKEB1T
A Random Walk Down Wall Street directly contradicts The Intelligent Investor.
I'd like to recommend another book, more advanced than The Intelligent Investor. Security Analysis.
Two books that would be pretty good starting points (and a 3rd book for extra measure):
The first book you wanna pay special attention to Chapter 8 and Chapter 20, but read it ALL:
This one is more detialed
This third book isn't "reuired reading" but wouldn't be a bad idea to read---it teaches a healthy degree of cynicism about the things you read in financial reports and the things CEOs will tell you on TV---like CNBC etc
You're still being quite general, but I'll answer the best I can.
To be honest, as a trader I mainly traded OTC (Over-The-Counter) interest rate products that are not available to trade for retail investors, so you learn most of it on the job, other than pricing and valuing the products themselves, which appears on textbooks, but nothing that can be of much use for a retail investor.
Each financial product is different, so although there are some "transferable" skills, it truly depends on what you are trading, but again, trading is very short-termist so I wouldn't recommend it to a retail investor in spite of all those guru books that sell you that you can be a successful day trader, you can't: you'll just bleed losses, bid-ask spreads, brokerage fees and short-term taxes, plus again there is no way you'll beat full-time pros.
In terms of learning Economics and Finance, I'm afraid I'm of little help because I learned it all during my degree and masters at a very in-depth, specialised level, purely through textbooks. Also, a lot of it is very theoretical and not sure if of much use for an amateur level, or for real life, for that matter.
I did watch quite recently a video by billionaire hedge fund manager Ray Dalio, which explains quite well and succintly how the economy works. For those readers that don't speak English very well, if you go into Bridgewater's youtube account, you can find the video in different languages.
If what you refer to is equity investing, but not anything related to the Efficient Market Hypothesis (EMH), I quite sympathise with the value investing approach. In that sense, books I'd recommend are:
Oh, and you'll have to learn public company accounting and valuation inside out, as well as get used to reading annual and quarterly company accounts (amongst other things) on a regular basis.
The info sidebar of /r/SecurityAnalysis is probably a good starting point.
Anyhow, the real and only way to learn about investing is to get down to it and put some money on the line. Books will only get you so far.
Ações mesmo. Mas sem participar de fundos coletivos, e comprando empresas boas, sub cotadas em bear markets e sair fora delas quando der bull, quando todo mundo quer comprar. É menos difícil pro investidor individual fazer isso do que os grandes fundos, pois os pequenos podem se posicionar (e tbm sair fora) com mais agilidade. À medida que o patrimônio cresce além dos milhões, a fricção aumenta junto. Os 15% não seriam um retorno consistente, mas sim uma média de desempenho dividida entre o período total.
The Intelligent Investor
Daqui uns 15 anos eu volto pra avisar se deu certo.
There's one way to consistently make a lot of money investing over a long period of time. It has worked repeatedly for nearly a century, producing numerous billionaires. It's the only approach that enables someone outside of Wall Street to consistently beat the market and get rich (over many years).
The Intelligent Investor by Benjamin Graham
Security Analysis by Benjamin Graham
Margin of Safety, by Seth Klarman [pdf of book, out of print]
Buffett: The Making of an American Capitalist by Roger Lowenstein
Common Stocks and Uncommon Profits by Phil Fisher
intelligent investor is a great read, but for some more in depth stuff i like security analysis
first: Reminiscences of a Stock Operator by Edwin Lefevre
Whichever version of http://www.amazon.ca/Security-Analysis-Foreword-Warren-Buffett/dp/0071592539/ref=sr_1_1?ie=UTF8&amp;qid=1374797721&amp;sr=8-1&amp;keywords=security+analysis
Liar's poker is interesting. Skip wealth of nations in my opinion. I like it, but there are more pressing things to read.
Next, I'd say read this "Options, Futures and Other Derivatives by John C. Hull'
Read Brett Steenbarger's books on managing yourself (enhancing trader performance, and other)
Check out Jeff Augen books on options trading.
next: Trading in the Zone : Maximizing Performance with Focus and Discipline by Ari Kiev
>>>Most importantly, read on different topics.<<<
Read anything by Fabozzi fixed income, mortgages
I had a few in mind, but this was a great help to me: GS summer reading list has great titles: https://www.quantnet.com/wp-content/uploads/2010/11/Goldman-Sachs-Suggested-Reading-List.pdf
Graham, Bill Gross, John Train, Peter Lynch
I really liked The Predators’ Ball and Den of Thieves
Also, consider spending some money and getting one of these courses: http://www.wallstreetprep.com/programs/ (I'm not affiliated with them, but when they were starting out, I got one of the programs on discount, didn't fully persue it, but I found presentations to be very helpful on valuations and LBO introduction.. I imagine they got even better overtime)
The best two books anyone worth their salt would recommend are The Intelligent Investor and Security Analysis....in that order.
Assuming you are not trolling, you can glance through this book, this one or several others. Without knowing how to read financial statements (one of which is a balance sheet), you'll just be speculating on the value of a company.
Depends on what you're interested in -
Most of my work is in derivatives so would recommend
Those are good starter books and far, far beyond what you'll get out of all three levels of the CFA. There are much more mathematically focused books out there as well.
If you want to get mathy -
This was my first serious finance book in undergrad and I still reference it today.
I'm probably least strong in the equity space but most people recommend this book (I haven't read it)
>The good traders GameKyuubi was wrong about only one thing: There aren't any good traders.
If you haven't seen a good trader yet, does that mean they do not exist?
Nobody had ever seen a black swan. For thousands of years, that meant that they didn't exist. Until someone saw one, of course.
You are running into a fundamental problem of inductive logic, and it's preventing you from seeing trading rationally. If you want to read more on how this matters to traders, I'd suggest The black swan by Nassim Taleb
>There are lots of us who believe we are good traders. But we aren't. Of course, some of the loudest voices on Reddit regularly remind us about how well they time the market. Except when they don't time the market well.
Here is the first misconception about trading. The best traders have never timed the markets. They utilize arbitrage opportunities, which exist in countless forms across every asset class, and rarely have anything to do with market timing.
I highly recommend reading The Quants if you're interested in learning how successful traders operate, as well as their history. It's not only extremely informative, but highly entertaining
>A paper published last October by the Haas School of Business at UC Berkeley entitled "Do Day Traders Rationally Learn About Their Ability?" used nearly 15 years of stock market day trading data to conclude that all day traders are irrational, the vast majority of day traders lose money, and even when day traders are successful, they "irrationally attribute success disproportionately to their ability rather than luck."
Now this I agree with. The vast majority of traders are terrible at trading, and when they do win, it's because they are lucky, not because they are smart. One of the fundamental books on Wallstreet for understanding this is What I learned losing a million dollars
The entire story is about an extremely successful trader who lost everything on one bet, mainly because his entire life before that had been a string of extremely lucky coincidences, and he never realized it.
>Of course, their success was due to their unique trading ability and not the fact that the entire market rose like a rocket.
Keep in mind, the best traders are always benchmarked against an asset or index. This is called beta weighing. If you make less money trading then you would have from just holding the bench marked asset, you have effectively lost money from trading.
>Warren Buffett, the most successful investor of modern times, has often said that he only invests in what he knows. His preferred holding period: forever. With that model, his company, Berkshire Hathaway, has averaged a 19 percent annual return since 1965 which means it has risen more than 1 million percent.
There are a lot of reasons for Warren Buffet's success, but it's worth pointing out that it's a lot more complex than just picking a security and holding it forever. If you want to learn about value investing, and the fundemental analysis behind it, check out Security Analysis
It's written by Ben Graham, the guy who taught Warren Buffet everything he knows. Arguably the most important concept in the text is called [investing with a margin of safety](https://en.wikipedia.org/wiki/Margin_of_safety_(financial)
Bitcoin definitely has intrinsic value. The problem is, nobody knows what that intrinsic value is worth. Since there is no currently known method of valuing a decentralized network (although progress is being made) Warren Buffet wouldn't touch bitcoin with a 10 foot pole, and if you want to invest in value, the way he has, you shouldn't either.
>Trading is no solution for intelligent people. What we need are new ways to use cryptocurrency.
Ouch man, that's harsh. I'm interested in why you correlate hodling with intelligence. IMO, there are dumb people hodling, and dumb people trading. Most of the time, it's those who form an opinion based on a single source, or worse yet a single quote, who are dumb. It's those that think in absolutes, and without a healthy degree of skepticism.
According to Ben Graham, it's not the speculators or the investors that are dumb. It's the people that can't tell the difference between the two.
EDIT: Sorry, typed this up real quick at work. Spelling and grammar mistakes everywhere.
I get my news about the company from the WSJ. The new CEO has 30 years experience in other successful dairy and food companies. As for my vauluation, I learned my tatics from people at William Blair, MS, and other Private equity firms as well as Ben Graham's security analysis .(https://www.amazon.com/Security-Analysis-Foreword-Buffett-Editions/dp/0071592539?ref_=fsclp_pl_dp_1).
When people say vaule investing is dead I would like to remind them that the exact same thing was said in 1998-2000. The faster something rises, the harder it falls.
As for bear arguments on the stock I would say my biggest concern would be Walmarts monopoly in having their own dairy farms.
Start With Why [Simon Sinek]
48 Laws of Power [Robert Greene] (33 Strategies of War, Art of Seduction)
The 50th Law [Curtis James Jackson]
Tipping Point:How Little Things Can Make a Difference and Outliers: The story of Succes [Malcolm Gladwell]
The Obstacle is the Way, Ego is the Enemy [Ryan Holiday] (stoicism)
[Tim Ferris] (actually haven't read any of his books, but seems to know a way to use social media, podcast, youtube)
Get an understanding to finance, economics, marketing, investing [Graham, Buffet], philosophy [Jordan Peterson]
I like to think us/you/business is about personal development, consciousness, observing recognizable patterns in human behavior and historical significance. It's an understanding of vast areas of subjects that connect and intertwine then returns back to the first book you’ve read (Start with Why) and learn what you've read past to present. Business is spectacular, so is golf.
Irrationally Predictable:The Hidden Forces that Shape Our Decisions - [Dan Ariely] (marketing)
The Hard Things About Hard Things - [Ben Horowitz] (business management)
Black Privilege: Opportunity Comes to Those Who Create It - [Charlamagne Tha God] (motivation)
The Lean Startup: Use Continuous Innovation to Create Radically Successful Businesses - [Eric Ries]
Zero to One: Notes on Startups, How to Build the Future - [Peter Theil]
>I’m 20 right now with 1.5M in savings.
You have a great head start compared to most people! Don't squander the money. You'll realize 1.5M isn't that big soon enough, if you haven't already.
>While I really do appreciate the groundbreaking and insightful concepts that he introduces in his books, I feel like it doesn’t specifically teach you how to invest especially if you are an absolute beginner
Yes, I noticed this too but there was one crucial lesson he taught in the book that people miss - cashflow management. What did you learn about cashflow management?
Don't underestimate that lesson. It's literally the key to becoming and staying wealthy. It's probably more important than learning how to analyze a company's financial statement, forecast price movement, etc.
Once you feel like you're ready, go and study the different methods for analyzing a company. I would suggest reading this book: Security Analysis and this. Those two books will teach you exactly what you're trying to figure out now in terms of "learning to invest".
Keep learning, don't stop growing.
You mean this book? https://www.amazon.com/Security-Analysis-Foreword-Buffett-Editions/dp/0071592539/ref=sr_1_1?ie=UTF8&amp;qid=1474598387&amp;sr=8-1&amp;keywords=security+analysis
A guy I know recommends this one but I'm not sure if he's read the book you recommended: https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661/ref=sr_1_3?ie=UTF8&amp;qid=1474598469&amp;sr=8-3&amp;keywords=security+analysis
Do a tonne of reading. A lot of things are US based but the principles apply to Canada too. Read the investing for beginners info at about.com to get a grasp. Joshua Kennon is a pretty smart guy when it comes to investing and business but he really just follows the principles of Benjamin Graham (Warren Buffet's mentor). Security Anaylsis is very good as well as The Intelligent Investor.
Margin of Safety by Seth Klarman. The market has spoken and it's the best.
More seriously, I'd go with Security Analysis by Benjamin Graham and David Dodd. It's a little more dense compared to Intelligent Investor, but definitely digestible with an undergrad understanding of econ.
*Oh, and the Hull text is the derivatives bible.
Are you asking a question, or making a statement? Would you like to define what you mean by "other stuff"?
If you want to know where I derived the ideas that I formed my comment from. It was mainly from reading these three books -
Security Analysis, 6th edition, by Graham & Dodd
The Intelligent Investor, by Graham
A People's History of the United States, by Zinn
I feel like this statement should have a question mark at the end of it.
Fundamental analysis isn't some dark art. It's fucking arithmetic.
Read this book and this book It should take you less than a month to read both.
You're so wrong let me guess you're heavy ACB? ....dont call people noobs..both of your comments SMH...maybe time for you to sit back and reflect. Read a finance book can I recommend security analysis foreward by Warren Buffett.. https://www.amazon.ca/Security-Analysis-Foreword-Warren-Buffett/dp/0071592539?th=1&amp;psc=1&amp;source=googleshopping&amp;locale=en-CA&amp;tag=googcana-20&amp;ref=pd_sl_4v6x91xbv7_e