Reddit Reddit reviews The Intelligent Investor, Rev. Ed

We found 13 Reddit comments about The Intelligent Investor, Rev. Ed. Here are the top ones, ranked by their Reddit score.

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The Intelligent Investor, Rev. Ed
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13 Reddit comments about The Intelligent Investor, Rev. Ed:

u/MasturbatingMormon · 10 pointsr/stocks

Use this link so no one gets a nickel:

u/novacham · 7 pointsr/investing

Read the Intelligent Investor.

You're assuming all actors in the market are rational. They're not. When the markets dip, people sell to try and prevent losses. When they go high, they try to buy in to ride the wave up.

When the markets tanked in 2008, people were selling off the stock in their 401k's when they weren't going to retire for decades, because they panicked. They should have started buying instead.

u/BigFrodo · 6 pointsr/AusFinance

Disclaimer: I'm mid20s guy with less invested in shares than I have in my super. The following is what I did to get started in investing which sounds like you're about where I was a year or two ago.

First of all; depending on your circumstances be aware that ING Direct's or ME Bank's savings accounts are currently giving 3.00% interest which might be better than your term deposit if you don't want to go whole hog into shares right away. (ING Direct also does $50 bonus referral codes so expect a flood of PMs now that I've mentioned this)

As for books:
/r/FI's wiki makes some good recommendations from what I've read of them


>* The Bogleheads Guide to Investing

  • A Random Walk Down Wallstreet
  • The Four Pillars of Investing
  • The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
  • Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School -- Suggestion - Ignore Rule 9 regarding individual stock picking.
  • The Intelligent Investor -- Caution - Embark on individual stock ownership at your own risk.

    The lowest barrier to entry would be that "acorns" app but I strongly recommend taking the couple days to make a CMC account or some other online brokerage with low fees and buy ETFS through that instead so that you're actually learning how it all works and not just pressing buttons on an app. Link it up with free Sharesight account for pretty graphs and easy tax reporting and that should teach you more about "having a share portfolio" than the majority of the population.

    Obviously this subreddit and /r/fiaustralia in the sidebar are worth keeping an eye on for insight from people with more skin in the game than me.


    Now, the other option is you want to ACTIVELY trade that $1k. If you've read some of Bogle's explanations on why that's a bad idea, realised you'll be competing against people with much bigger budgets and a full time job anaysing these things and understand that even at CMC's low $13 flat fee you're losing 1.3% of your $1k packet with every trade then you'll need advice from someone other than me.

    Personally the best investment I think I have made so far was my $1k of "beer money" that I threw into bitcoin. Not because it made a good return, but because after months of careful analysis, frequent trading and keeping an ear to the ground on new alt coins I turned my 3.5 bitcoin into 1.05. I didn't end up losing a cent thanks to other factors but seeing how badly my "high risk, high gain, actively managed portfolio" went I'm ecstatic that I learned my lesson with $1k and not with my self-managed super fund at 57 y/o like several people I know.

    TL;DR: Anything by John Bogle
u/drgarrison-1 · 6 pointsr/CryptoCurrency

Stocks are not that complicated. Everyone in finance wants you to think its over your head. The basic idea behind any investment is that you believe it will yield some sort of return.

This is the basic idea behind the stock market; companies are divided into shares and sold in public markets regulated by the SEC (Securities and Exchange Commission) and independent organizations like FINRA (Financial Industry Regulatory Authority).

Basic stock analysis starts with analyzing financial reports that are regularly filed with the SEC. The most important parts of these reports are the Income Statement, Balance Sheet, and Cash Flow statement. AKA the holy trinity. You can look at the current state a company is in by determining its market cap. The market cap is essentially what the market values the company at. It is the number of shares outstanding (number of shares currently in the market) multiplied by the current price of the stock (the number displayed is usually just the price that was last paid for it). Its just how much it would cost to buy the entire company.

From that point you would begin to create an analysis of the financial documents you get from the SEC. This analysis will be based on many different factors and the way people analyze stocks varies wildly. This is really where the secret to finance lies. How can you determine somethings actual worth? There are many ways to do it but basic stock analysis can be learned by reading a few books. I'd suggest starting with Ben Graham's The Intelligent Investor. He mentored Warren Buffet, who is arguably the greatest investor to ever walk the earth. This book will teach you everything you need to know about basic stock analysis. It was written in 1949 and has been updated periodically.

Once you learn to determine the value of a company, you determine if the company is going to grow or shrink. Then you place a bet saying you believe either the value will go up, or go down. If you believe the value will go up you buy stock. If you believe the value will go down you place a bet against the company by investing in such a way that you benefit from the stocks decrease in price. This is known as a "short".

Form there you'll probably develop onions and strategies of your own. Just consume as much information about it as you can.

u/strolls · 5 pointsr/UKPersonalFinance

> If its making about 7% year on year, I can see how that could compound over time.

I know we link some examples like this on the compounding returns page of the wiki, but just beware that the sequence-of-returns uncertainty means investment returns are never so predictable.

Risk and returns are inherently linked - you cannot generate returns with this money without exposing it to, at least, market fluctuations. You have to be ok with that.

I found Tim Hale's Smarter Investing remarkably helpful in coming to terms with this, and then The Intelligent Investor quite reassuring.

u/Grenweld · 4 pointsr/stocks

I was in your position a couple weeks ago as a beginner, and here are some of the resources I found useful to learning the basics:

  • Read all of the basics on the r/personalfinance sidebar, it has some pretty good advice.

  • Read all of the sidebar frequently asked questions on the /r/investing sidebar.

  • Read If You Can by William J Bernstein. Its a short pamphlet with some additional assigned reading found inside that will fit what you’re looking for. (I've personally read the first two 'homework' assignments and they were very good.)

  • Read The Richest Man in Babylon by George S Clason.

  • Read The Little Book on Common Sense Investing by John C Bogle. It's a very well written short book highlighting the power of Index Funds. It's very clearly biased (he was the one who basically invented them and also founded Vanguard), but is absolutely worth the read.

  • Read The Intelligent Investor by Benjamin Graham. This can apparently be likened to the Bible of Value Investing. Certainly much longer than all the previous reading, but also worth taking the time to read and learn. I found the additionally commentary chapters by Jason Zweig very helpful.

    Im currently reading A Random Walk Down Wallstreet, and it’s definitely very valuable and worth reading. Highly recommend.
    Hopefully this helps and at least gives a starting point.

    Good luck!
u/jessezany · 2 pointsr/perth

Yeah completely understandable, it's not too complicated, but from an outsiders perspective can look daunting. I can't really recommend any specific financial advisors, but if you have the time to do some reading I can recommend a few things that will help you out. A Random Walk down Wall Street and The Intelligent Investor are great, easy to read introductions to value investing, while this post on /r/AusFinance gives some pretty straightforward and practical advice.

While its not the advice you're looking for right now, do consider it as it may help save you thousands of dollars in the long run.

u/quietinvestor · 2 pointsr/EuropeFIRE

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:

u/Hisx1nc · 1 pointr/Eve

Read the Intelligent Investor by Benjamin Graham.

I'm sure there's a newer version but I just linked the first one I saw that looked right.

> I've been informing myself about trading stocks/forex/(specifically) cryptocurrency

Forex is going to be gambling for the vast vast vast majority of people. Crypto is pretty much the same thing unless you have some inside info or insight. However, value investing is always legitimate.

u/xamomax · 1 pointr/Economics

There is a book investing for dummies. Actually a series of dummies books for investors that are reasonably good. If you read them, you would probably know enough to stay away from FB. A book I would recommend to anyone looking to invest is Warren Buffet / Benjamin Graham's book The Intelligent Investor, and if you read that, you would definitely stay away from FB.

That's not to say there is not money to be made from FB, just that it's not investing - it's gambling.

u/horsespower · 1 pointr/options

If you don’t know stocks you don’t know options. Options are a derivative, if you don’t know the underlying you’re f**ked from the get go. This is like trying to predict the position of a lever when you have no idea who or what is on the other end of it.

The Intelligent Investor is a very famous book about investing in general. Not trading, in fact a good part of the book is basically talking people out of trading, but if you’re dead set on options you can ignore all that. The basic descriptions about equities etc though are fantastic for a beginner.