“The true investor scarcely ever is forced to sell his shares, and at all other times he is free to disregard the current price quotation. He need pay attention to it and act upon it only to the extent that it suits his book, and no more. Thus, the investor who permits himself to be … Read more
This is the title of a famous book that was a result of multi-year studies and research done by Dr Stanley and Dr Danko to discover the profile, lifestyle and habits of America’s wealthy households and how they became wealthy. The title is intriguing as they say, because initially they started their research by surveying … Read more
Among the famous investors of Graham-and-Doddsville that Warren Buffett refers to as ‘super-investors’, the most conservative yet in no small measure less successful was Walter Schloss. He was perhaps the closest to what was commonly referred to as ‘cigar-butt’ investing, and someone who perhaps followed the bargain hunting principles in stock picking perfectly and over … Read more
“The outright ownership of real estate has long been considered as a sound long term investment, carrying with it a goodly amount of protection against inflation. Unfortunately, real estate values are also subject to wide fluctuations; serious errors can be made in location, price paid etc. Finally, diversification is not practical for the investor of … Read more
“To obtain better than average investment results over a long pull requires a policy of selection or operation possessing a twofold merit: 1) it must meet objective or rational tests of underlying soundness, and 2) it must be different from the policy followed by most investors or speculators.”- The Intelligent Investor In the area of … Read more
“Thus we return to the statement made at the outset, that the kind of securities to be purchased and the rate of return to be sought depend not on the investor’s financial resources but on his financial equipment in terms of knowledge, experience and temperament.”- The Intelligent Investor I have often heard a lot of … Read more
I have often wondered whether financial independence is an end in itself. The goal of financial planning is to basically create a corpus for a goal like retirement. This corpus must replace your current income stream in inflation adjusted terms. And it is all good. Getting out of debt, high rates of savings and investing … Read more
“We are convinced that our 50-50 version of this approach makes good sense for the defensive investor. It is extremely simple; it aims unquestionably in the right direction; it gives the follower the feeling that he is at least making some moves in response to market developments; most important of all, it will restrain him … Read more
“Miss Tomlinson ends her discussion of this ultrasimple investment formula with the striking sentence: ‘No one has yet discovered any other formula for investment which can be used with so much confidence of ultimate success, regardless of what may happen to security prices, as Dollar Cost Averaging.’”- The Intelligent Investor The core objective of diversification … Read more