A Great Book for People Who Think Investing Is Difficult
Inspired By 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
Inspired By 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
Rules of Investment Number Four
Inspired By CEO ·
Basic rule number four is, it is the investor itself is really the asset or the liability.
The investor is the asset or liability not the investment or security. I often hear that people say, ‘Investing is risky‘ it’s the investor who is risky. It is ultimately the investor who is the asset or the liability. I have seen many so-called investors lose money when everyone else is making money. I have sold businesses to many so-called business people and watch the businesses soon go bust. Read more
Basics Rule of Investment
Inspired By CEO ·
In world of investment, a plan is very important and without it you actually go in the jungle without your maps and GPRS. The more plans, the better it is and after you have those plans firmly in place, then you can experiment and learn more exotics techniques utilizing different investment vehicles. After placed your investment plans together, there is few basic rule you need to keep in mind.
Basic Rule Number One.
The rule number one is to always know what kind of income you are working for. In market, there have three different kinds of income, Earned Income, Portfolio Income and Passive Income. Read more
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