A Great Book for People Who Think Investing Is Difficult
Editorial : CEO ·
James P. O’ Shaughnessy wrote the perfect book for people who think that investing has to the risky, complex, and dangerous. It is also the perfect book for those who want to think that they can outsmart the market. This book has the academic and numerical proof that a passive or mechanical system of investing will in most cases beat a human system of investing.. . even professional investors such as fund managers. This book also explains why nine out of ten investors do not make money.
O’ Shaughnessy’s best-selling book is titled “What Works On Wall Street: A Guide to the Best Performing Investment Strategies of All Time”. O’ Shaughnessy distinguishes between two basic types of decision-making:
- The clinical or intuitive method. This method relies on knowledge, experience, and common sense.
- The quantitative or actuarial method. This method relies solely on proven relationships based on large samples of data.
O’ Shaughnessy found that most investors prefer the intuitive method of investment decision-making. In most instances, the investor who used the intuitive method was wrong or beaten by the nearly mechanical method. He quotes David Faust, author of The Limits of Scientific Reasoning, who writes, “Human judgment is far more limited than we think.” Read more
Investing is Not What Most People Think
Editorial : CEO ·
Many people think investing is this exciting process where there is a lot of drama. Many people think investing involves a lot of risk, luck, timing, and hot tips. Some realize they know little about this mysterious subject of investing, so they entrust their faith and money to someone they hope knows more than they do.
Many other so-called investors want to prove they know more than other people. . . so they invest, hoping to prove that they can outsmart the market. But while many people think this is investing, it is not what investing actually mean. Investment actually is a plan, often a dull, boring, and almost mechanical process of getting rich.
Investing is simply a plan, made up of formulas and strategies, a system for getting rich. . . almost guaranteed. Unless, of course, you want it to be that way or you think that is the way investing has to be, so there will be risky for it. But in the really world, investing is as simple and boring as following a recipe to bake bread. Read more
Why Investing Is Confusing??
Editorial : CEO ·
First of all, investing means different things to different people. That is why it seems so confusing? What most people call investing is not really investing? People are all talking about different things yet they often think they are talking about the same thing.
No One Is an Expert at Everything
Investing means different things to different people. There is no one person who can possibly be an expert at the entire subject. There are many different investment products and many different investment procedures.
Everyone Has a Bias
A person who is good at stocks will say, “Stocks are your best investment.” A person who loves real estate will say, “Real estate is the basis of all wealth.” Someone who hates gold will say, “Gold is an obsolete commodity.”
Then you add procedure bias and you really become confused. Some people say ‘Diversify. Don’t put all your eggs in one basket,” and still others such as Warren Buffet, America’s greatest investor, says, “Don’t diversify. Put all your eggs in one basket and watch that basket closely.”
All of this personal bias from so-called experts adds to the confusion that shrouds the subject of investing. Read more
The Art of Making a Mistake
Editorial : CEO ·
The first thing that happens after you make a mistake is that you become upset. Everyone I know gets upset. That is the first indication of a mistake and at this point of upset, you find out who you really are.”
Well at a moment of upset, we become one of these characters. The characters that are brought to center stage when upsets from mistakes occur: that is most important. Real investors must be prepared to profit as well as learn when things do not go as they want them to in the market. The best thing a market can teach you is how to learn from your mistakes. Learning to control my temper has been a lifelong process. These characters that we might become;
The Liar. The liar will say such things as: “I didn’t do that.” Or “No, no, no. It wasn’t me.” Or “I don’t know how that happened.” Or “Prove it.” Read more
Master Of Top Sale’s Mindset
Editorial : CEO ·
MASTER is an acronym for:
M mean meet People (preparation, prospecting, positioning)
A mean ask Questions (probing/interviewing/ needs analysis/investigating)
S mean sell Benefits (presentation and persuasion)
T mean tackle Objections (objection handling and negotiation)
E mean encourage to Buy (closing)
R mean relationship Building (follow-up and service)
There are two things to MASTER in selling benefits – design and delivery. Design is the structure of the presentation. Delivery is the skill to persuade the buyer to buy. Read more
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