The Little Book Of Commonsense Investing By Jon Bogle

-The advice about investing in the stock market that I found most interesting was that the longer you hold your investments, the greater the probability is of them working.

Buffett challenges the conventional wisdom regarding diversification. He argues that holding a few good stocks is far more important than spreading funds across a broad number of stocks. It is a fact that investors have been so oversold on diversification that the fear of having too many eggs in one basket has caused them to invest very little into companies about which they thoroughly know and far too much into others about which they know nothing at all. It is a dangerous thing to do as buying a company without sufficient knowledge may turn out to be even more dangerous than having adequate diversification.

Chapter 1 Too Much Cost, Not Enough Value debates about the real measure of investment. It provides explanation of why good investment doesn’t only consider the amount of money you put in it but more importantly considers the value it provides for you. Bogle argues that “We have moved to a world where far too many of us seemingly no longer

I strongly advocate tactical asset allocation process and diversification over several different income and growth strategies. I believe that risk management and protection of investor's endowment are major objectives. In my portfolio, stocks may occupy a large portion and the

The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains

There is a sense of complexity today that has led many to believe the individual investor has little chance of competing with professional brokers and investment firms. However, Malkiel states this is a major misconception as he explains in his book "A Random Walk Down Wall Street". What does a random walk mean? The random walk means in terms of the stock market that, "short term changes in stock prices cannot be predicted". So how does a rational investor determine which stocks to purchase to maximize returns? Chapter 1 begins by defining and determining the difference in investing and speculating. Investing defined by Malkiel is the method of "purchasing assets to gain profit in the form of reasonably

When people are asked how people will plan or rethink for retirement, the first thing that people will think about, is saving. There are some positive ways to save money, the author suggests to the readers to sign up for 401(k) plan. It is a plan help employees save for retirement, 401(k) should allow anyone to build up a nice nest egg. For example, “In Dave Ramsey’s The Total Money Makeover, for instance, he gives us “Joe and Suzy Average” who invest $7,500 per year ($625 per month) using their tax-free retirement account. They do this from age 30 to 70, getting 12 percent interest per year. At the end, they have $7,588,545 to their names.” When people invest in 401(k) plan, it is safer and more money in retirement and it also has a benefit that you don’t need to pay for tax when you take the money out. Beside 401(k), people prefer to invest money in the stock market for retirement-plan. According to author “ During a recent 40- year period,

No one likes to lose, especially losing money. Shaun Pfeiffer spends three pages first talking about the New England Patriots and then goes into connecting their winning tips to investments. New England Patriots head coach, Bill Belichick, is quoted saying the following on how they manage to win so much, “The things that cause you to lose, you have to eliminate. Before you can win, you can’t lose” (LHNTL). This quote is then connected to the four big mistakes in the investment world: buying high; paying too much in fees, expenses and taxes; selling low; excessive concentration. Pfeiffer uses the top four investment mistakes to teach you how to avoid and prevent them by having the correct management techniques.

If you are a new investor who is interested in investment history or how to make investments, purchase this book by Burton G. Malkiel. This book is ideal for any experienced investor who wants to brush up on their knowledge of investment techniques and theories also. There are not many books that have been written about investing. A Random Walk Down Wall Street is broken down into four parts which include; Stocks and Their Value, How the Pros Play the Biggest Game in Town, The New Investment Technology and A Practical Guide for Random Walkers and Other Investors. In total, there are fifteen chapters that cover a lot of key points that many will find interesting and informative.

In regards to investing in stocks, bonds, currencies, or other investment products, it has always been a normal emotion to be happy when a stock price rose and upset when a stock price fell. Yet for Warren Buffet and his team at Berkshire they welcome these declining prices because of the opportunities it brings. According to Warren Buffet, a true investor would be buying stocks and businesses for their entire life, and “with these intentions, declining prices for businesses benefit us, and rising prices hurt us.” Understanding that the investor is going to be a buyer for eternity an investor should

“Jim Cramer’s Twenty-five Rules for Investing” teaches and suggests investors the effective ways and attitudes for investing. Some of the rules are practical experiences while some are psychological strategies that investors should have in mind. The following ten rules are the ones that I found best interested me:

There is a sense of complexity today that has led many to believe the individual investor has little chance of competing with professional brokers and investment firms. However, Malkiel states this is a major misconception as he explains in his book “A Random Walk Down Wall Street”. What does a random walk mean? The random walk means in terms of the stock market that, “short term changes in stock prices cannot be predicted”. So how does a rational investor determine which stocks to purchase to maximize returns? Chapter 1 begins by defining and determining the difference in investing and speculating. Investing defined by Malkiel is the method of “purchasing assets to gain profit in the form of reasonably

Born in around 1930, Warren Edward Buffett is regarded as world’s most successful investor (Blair, 2004). His birthplace is Omaha, Nebraska. Buffett was the second-born and the only son of Congressman Howard Buffett, who had three children. Buffett first attended Rose Hill Elementary School, but in 1942, his father relocated to Washington D.C, after being elected into the US Congress. While in Washington DC, Buffet completed his elementary education and got enrolled in Alice Deal Junior High School. In 1947, Buffett completed his high school education from Woodrow Wilson High School, after which he started venturing into entrepreneurship and investment. It is noted in his bios that Buffett wanted to venture into businesses, instead of going directly to the college, but his father overruled his desires. Thus, Buffett had exhibited a desire to enter into business at a tender age, as most of his childhood years were livened up with business interests. Buffett started his business by selling Coca-Cola bottles, chewing gums, and weekly magazines through sidewalks. Additionally, Buffett made even up to $175 monthly through newspaper delivery in his high school life. He finished his university degree in Business Administration from the University of Nebraska-Lincoln, at the age of 19. In 1951, Buffett enrolled at Columbia University to pursue A Masters of Science in Economics.

In his article "Warren Buffett: The World 's Greatest Investor," financial journalist Maynard Patton presents some quotes from Warren Buffett on his investment style. Buffett is attributed with saying "conventional diversification makes no sense for [a know-something investor]. It is apt simply to hurt your results and increase your risk." Buffett 's rationale is that investors should not buy shares of a stock unless they feel the company they are buying into will be around for a while. To make an assumption that a particular company will still be a functioning body in the future would require some knowledge of the company 's financial situation and the industry in which it operates. Essentially, Buffett believes that people should only invest in companies with which they are familiar. Along these lines, one of his strongholds is that many people purchase stocks of companies in industries with which they are not familiar for the sake of diversification. Making a

The Firm’s 94-year history is grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. The Firm’s investment approach derives from the work of the late Benjamin Graham, co-author of the first textbook on investment research, Security Analysis (1934) and author of The Intelligent Investor (1949). Graham, through his investment firm Graham-Newman Corp., was one of the Firm’s primary brokerage clients in the 1930s, 1940s, and 1950s. It was through Graham that the original partners of the Firm developed brokerage relationships with investment legends Walter Schloss and Warren Buffett …