G wrote:
> Makes sense. Thanks Gruss.
>
> You paint this interesting picture of the wall street sharks, the upper 1%,
> the "smart money" guys....circling around, waiting for the "dumb money" to
> come along so they can clean up. I think this has always made me a bit
> hesitant about jumping into investing. I know so little about what separates
> a good investment from a poor one, that i'd be relying almost solely on
> someone elses opinions. Thats something i'm not too comfy with when it comes
> to my money.
>
> Maybe im taking the first steps towards gaining the understanding I need to
> go about it myself....
First rule of investing. Read "The Intelligent Investor" by Ben Graham.
He was an investor and professor at CU. Basically he lost a boat
load of money. Sat down and asked why did I lose all that money and
what could I have done not to have lost that money. You get to benefit
from this mistakes. The whole book is actually skewed by his gigantic
losses, as the objective is to outpace inflation and prevent the loss of
capital.
I haven't gotten around to finish reading The Intelligent Investor
because of work, school, studies, and other reasons. I would much
prefer to read that then how to price an option though.
Warren Buffet, his star pupil, considers this the single most important
book that anyone can read. It was meant for average people. If you want
to get into something a bit more, uhm heavy, you can read his other
texts such as Security Analysis.
PS. Wall Street is not 1% sharks that eat the guppies. "Dumb money" can
be given to smart managers. And then it becomes smart money too. It
all depends on what your goals and your time horizion.
--
2004 - The year $184M couldn't buy a pennant.
Ron Artest: Extremely flawed, very accidental, semi-martyr
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