This book is well-written and easy to read. ( that's why I could finish it within a few hours) I read it even during the exam period. It is obviously much more interesting than the academic stuffs and boring textbooks.
It interviewed 8 experienced investors and celebrities and they shared their ways of doing business, investing and financial planning. (it just briefly illustrates these, not digging too deep so far) It is more likely to tell the readers about the mindset and financial quotient (more on financial EQ) of a successful investor.
Points to note for myself :
- Investment Chronicle, Financial times, financial report
-invest sth unrelated to general economic environment e.g. red wine future ( reflect demand and supply > increase in value since supply < demand) - cannot neglect external factors apart from purely the company's performance when doing investments (e.g. the impact of derivatives e.. future, warrent, Hedge fund etc on the share price) - younger> higher risk tolerance level
-increase in interest rate is not benefitical to the market, vice versa
-in China, 30% people have mobile phone, 10% in rural area> China mobile (941) :)
-淡市(it implies low transactions)入市，stable stock price which may not reflect the true value of the stock, 抗跌力強, 更有上升動力 ( since everyone is holding money, when this purchasing power releases again> high return rate)
-knowing how to play around with the derivatives instead of risky stocks by using a small amount of money to train the finanical skills especially for the youth
- beginners with limited capital should not diversify your stocks too much, choose high-quality stocks for long-term investments
- Derivatives are very good educational tools, because the buyers not only have to consider the share price, but also other factors, e.g. implied volatility, gearing power> train the risk management skills
- be calm and analytical when everyone is crazy in the stock market
- the motivation for the stock price increases > good global economy, low inflation rate, having econoic growth
- HK stock money is always greatly affected by American economy ( American funds lead the global stock market and lots of HK stocks are hold by Americans)
- having less capital> speculative approach , having more capital> conservative approach
- release the pressure > sell the stock which can already cover the cost of purchasing, then trade stocks with no cost
- grasp the economic cycle > buy stock at the beginning of bull market, sell at the end of the bull market
-know how to do short selling> earn a lot when the stock market collapses
-long term investment > 10 years...concentrate on the potential of future growth, cash flow
-short term investment > spending few capitals on diversified small stocks
- using PE ratio to determine whether buy the stocks is not precise enough>>> we have to consider the potential growth as well > so PEG = PE/EPS is more accurate to measure the value
-《曾氏通道》 > shows the opportunities of buying and selling ?!? ( have to figure out more about it later)
-demand for real estates with lower value is greater than the higher ones> higher liquidity
-investment percentage on stocks should be larger than real estates
- have to consider regional factors ( land price) , the govenment land policy when acquiring real estates> the power of growing value and generating rent return
- the producing cycle of real estates is long, it is not as flexible as the stock market, it changes less frequently
- dealing with the problem of increasing inflation rate and maintaining living standard> investment
-somehow the stock market is efficient, the stock price has already reflected the impact of annual report or news> so need to investigate the lower and upper courses the particular industries and company's future
P.S.* since it is borrowed from the library, a previous reader highlighted a lot of things in the book by using a pencil, and I couldn't help laughing when I saw he highlighted "女朋友是基金經理"...just wondering why he regarded it as one of the main points...lol
uhuhuh, I have to focus on the boring exams again....
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