02-23-2009, 02:01 PM
grizzle Wrote:Dustie Wrote:Griz,
If you become interested in becoming a long term investor, let me know. I have a book list for anyone who's interested. I know that options and short term trading seem like fun, but the truth is that most people lose money going that route.
Yes, I am definitely interested in long term investing. Any and all book lists, info, and advice you are willing to share would be greatly appreciated. Thanks Dustie!
Here is what I did to aquaint myself with long term investing:
1. Took Macro and Micro economics
2. Took Accounting I and II
3. Took business statistics and business finance
4. Read the following:
-Graham: The Intelligent Investor
-Security Analysis (over my head at first but less so each time I went back to it)
-Phisher: Common Stocks Uncommon Profits
-Buffestology and a host of other Buffet books
-Annual reports for any company your considering investing in
-Trade publications (you want to pick industry leaders that aren't over priced)
Here is what I read to aquaint myself with trading and techinical analysis:
Pretty much the strait line of books and newpapers from the Investors Business Daily guy (William O'Neil).
I have come to the conclusion that the long term Buffet style investor is usually going to beat the trader. Even if you don't have time to read and do all the things I listed above in the "long term" column, you can still beat 62% of fund managers by simply investing in a low cost S&P 500 index fund (i.e. Vangaurd).
Some may question me on my analysis, but I have only three data points so far which I have judged myself by:
1. Beat the S&P by 11% 2008 (My performance was only -26%)
2. I beat my professional trader friend by 7% (he's an IDB guy)
3. I beat another trader/short termer options guy who's on these forums (I won't list his performance against mine for 2008 unless he says its ok).
"Hamilton is really a Colossus to the anti republican party. Without numbers he is an host within himself. They have got themselves into a defile where they might be finished but too much security on the republican part will give time to his talents and indefatigableness to extricate them. We have had only middling performances to oppose to him. In truth when he comes forward there is nobody but yourself who can meet him. His adversaries having begun the attack he has the advantage of answering them and remains unanswered himself. For God's sake take up your pen and give a fundamental reply to Curtius and Camillas" - Thomas Jefferson to James Madison