AN APPROACH TO LONG-TERM INVESTING Reach Your Financial Goals
Benjamin Graham first published “The Intelligent Investor” in 1949, and the book has been acknowledged globally as the most significant investment guide of the 20th century. It has taught and inspired people worldwide, including Warren Buffett, who described it as one of the best books ever written on investing! According to Graham, those willing to devote energy and cultivate a specific mindset have the opportunity to generate profitable long-term investments. He was able to gain wealth by precisely evaluating companies in the stock market without taking any significant risks.
This can help you better understand how your investment could appreciate or depreciate over time. Just as Graham did, precisely evaluating versus guessing could make you a more successful investor. DON’T LET BIAS LEAD YOU TO BAD DECISIONS. One of the significant risks when investing is when investors allow bias to lead to wrong investment decisions. The news, economic forecasts, and others’ views can alter a decision. It seems as though investors become attached to information that tends to have little to do with the long-term value of their investments. That is why it is essential to prioritize your research over impulses. FOCUS ON THE FACTS. It can be easy to follow what the majority are doing. Still, you must rely on something other than the herd mentality to buy or sell your holdings. If you’re looking to invest long term, you must analyze your preferred stocks. This will help you make informed investment decisions rather than selling or buying based on what everyone else is doing.
Here are three lessons from “The Intelligent Investor” that can help you invest successfully!
HAVE A Laugh Some important questions to ask are: • Is it worth the market price it trades at today? • Is it overvalued? • Does it have potential growth in the future? UNDERSTAND THE VALUE BEHIND THE BUSINESS. Whatever stock you are looking to invest in, it is essential to know that it isn’t simply an asset. There is a real business behind it, and if you’re looking to invest long term, you must understand how much value the company has.
With Graham’s long-term investment strategies and understanding the basic do’s and don’ts of investing, you’ll be better positioned to become an intelligent investor yourself!
In July 1518, a strange mania seized the residents of the French city of Strasbourg. Hundreds were struck with the sudden and uncontrollable urge to dance — seemingly for no reason. The plague began when Frau Troffea entered the streets and began to twist, twirl, and shake. She seemed unable to stop and danced until she dropped from exhaustion. However, once she rested, she resumed the compulsive, frenzied dancing. She continued for a week, and other residents eventually joined her. Many dancers would collapse from exhaustion, and some even died from heart attacks or strokes! Dance Until You Drop — Literally! When French Residents Had the Uncontrollable Urge to Dance
The most widely accepted theory is that the plague was a mass psychogenic disorder, which can occur under extreme stress. During this time, a series of famines and diseases tore through Strasbourg, which may have triggered the hysteria.
Whatever the cause of this strange phenomenon, the dancing plague remains one of the world’s most interesting mysteries.
jwyatt@harrisonlawgroup.com | HarrisonLawGroup.com | 3
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