A Walk down Wall Street. Reading notes

Preface:

In fact, it has been a long time since I finished reading this book, but I forgot to make reading notes and forgot more things. During the Chinese New Year, I took time to go over it again. A Walk on Wall Street is also an enlightening book for investment. But after all, the author is an American, so it is not realistic to introduce China’s fledgling stock market. At the same time, I believe that as long as the stock market speculators can understand how magic A shares (experienced the bank fund Yin fall blood general lessons). The individual is in the stage that invests fund at present, understand individual investor wants to protect the person that had won more than half only, also did not have courage and idea to go soo ha stock.

This book is more for new investors or completely do not understand the investment of people to read the literacy and introduction to the book, just go through the content of the book.

Description:

Simple summary: small white investment theory introduction book

The first half of the book is easy to understand, with examples of castles in the air, tulip mania and south Sea speculation. At the same time, the idea of random walk is put forward, some rules of the stock market and the law of market changes are introduced comprehensively, and some basic analysis is given. In the second half, basic analysis and technical analysis are used to explain their advantages and disadvantages, indicating that any means are not a panacea, and flexible investment plans need to be made according to the actual situation. At the same time, the last part is the part with the most advice and practical value. For the whole part of the second half may be more cloudy, because some financial knowledge involved, of course, also do not need to explore, slowly digest.

Book Philosophy:

Here are some of the ideas and ideas conveyed by the book:

  • Give new investment some basic investment concepts and basic investment analysis methods to help new entrants onto Wall Street
  • People repeat failure over and over again, and they still do, so don’t find any useful information or value from the past and history
  • Invest with a clear head, beware of castles in the air and random walks, and hold for the long haul rather than frequent short runs.
  • The chart analysis method and the basic analysis method of investment, and the prediction of stocks are the things that “gods” can do. The author denies the technical analysis, but the technical analysis is relatively objective despite the lagging information in modern technological means.
  • The value of a stock is the price that people are willing to pay for it. And the real value of the stock is in the future.

Recommendation level:

4 star

More literacy and popular science, easy to understand, really valuable advice in the last three steps on Wall Street section (described below). I can only say that if I am an American, I believe I can learn a lot, but as a Chinese, most of the valuable content I can get from it is to understand investment, some theories and skills of investment, and the reasonable distribution of investment portfolio.

Reading Experience:

I want to give up several times. I don’t recommend reading this book on my mobile phone. I suggest setting up a large screen to read a little bit every day. This book is a good book for anyone who does not know what investment is and can learn something about it. Of course, it is not a magic book or an investment guide to read. It is more about understanding investment and how to plan and invest.

If you want to read more interesting financial books recommend puppy money money:

Link: juejin.cn/post/692084…

Mind mapping:

I have written a mind map for my notes this time. Please refer to it if you are interested:

Share.mubu.com/doc/75E8VTk…

Curtain mind map

Notes:

The following section introduces the points that I consider important and the points that are more recordable:

Basic analysis:

The fundamental analysis method uses four basic indicators to measure whether an investment is sound:

  • Forecast growth: The bigger the dividends and profits, the more investors are willing to pay up.
  • Expected dividend payouts: The bigger the cash dividend, the more likely it is to be favoured by rational investors
  • Risk control: The lower the risk, the more welcome
  • Market interest rate: The lower the market interest rate, the more willing to pay for shares

The easiest thing to miss here is forecasting growth rates. The trick with many stocks is to create an illusion that allows retail investors to see a line that is reliable in the short term. With personal experience for reference, personal bought last year for a period of time of bank funds, because they see in bank stocks rise, come up to do that a leek, when held by bank fund increase to a certain period of time, suddenly stop growing, while the rest of the industry’s shares at the time of rising stage, bank shares appear cloudy and fall

A personal tip here is that if you want to test the waters of investment, spend a few tens of dollars to “play” a few funds and put them aside. In my opinion, this kind of thing is a game after all, because the game has no psychological burden. When you put real money into a black hole, I believe that people who are calm have no psychological bottom, unless they don’t care about profit and loss completely.

Three steps to Wall Street:

The content of this part is roughly the author tells you to invest the benefit of index fund, basically buy to leave the hand, follow the train of thought that the market goes, at the same time recommend to use fixed investment and the way that hold for a long time, with a lot of actual cases to explain a few advantages of investment index type stock. Here is simple to understand for buy index fund, and the use of cast surely + long-held strategy, you can beat the vast majority of people, from the perspective of the actual conditions of the reality, however, can endure “defensive” rare, because all the investment is essentially a purpose only, is to make money, and once those who want to make money to keep rational and how many? But from the present point of view, the strategy of fixed investment + long-term holding is still a very reliable and accepted by most people.

A castle in the air

Castle in the air is plausible but illusory thing, used to describe the stock in the right, however, should he deal cannot be used in daily life, at the same time, not as a direct payment, but similar to the concept of “coin” the existence of the financial world, the Dutch with history tells an iron law is the financial world is always constant ups and downs, It is impossible to have a “rise” all the time. When the frenzy of investment exceeds the normal rule of capital operation, there is only a complete collapse in the end. As can be seen from the global financial crisis, the world of capital is building castles in the air again and again.

Sleep Investment:

One of the interesting things in the book is the ability to get a good night’s sleep as a measure of risk resistance. Here’s the chart:

Four principles of asset allocation

The following four principles are basically around the point of rational investment. They are simple and easy to understand

- Risk and reward are inseparable - you have to pay as much as you want to risk, So-called wealth risks in investment stock fund, bond's actual risk depends on the hold time - better than buy-and-hold short-term game - persistent and insist - equal investment can reduce the risk of "bonds" and "funds" - a reasonable allocation of investment proportion - don't hang in a tree - risk bearing capacity depends on the overall financial situation Invest your spare money without using money that affects your normal life. Invest your capital as much as you take risks and invest it rationallyCopy the code

Personal Insights:

The book easy to understand the content of the first half, the author USES many actual cases to have investment ideas of readers “cold water”, the investment is not child’s play, need careful consideration, the investment at the same time also need according to the different age groups, for the younger generation, due to family and life stress is relatively light, for the operability of capital is larger, Usually close to half or more of the money can be invested,

This part the author in the “three steps” on Wall Street is on and some actual content, such as introduction to buy fund and hold for a long time, also through the pros and cons of proof than in the short term and long term operation, from the reality and history, hold the tolerance for a long time a book won’t lose his temper, at least can be guaranteed. At the same time encourage the diversification of investment, the use of island economy profits and the profits of the dispersion of the economy introduced the diversification of investment is how to avoid the risk, but also more suitable for the new people just into the investment this piece of reading.

An interesting thing to know from this book is that Newton used to be a “leek”. It is interesting to see this paragraph, so it is really difficult to keep a clear mind when investing, even the “god” will also fall.

Conclusion:

Finished reading the book so long to reading notes record, reason is easy to understand, this article extracts more is their memories of the deep part, it has a lot of valuable information in the article did not mention, but personal feeling is here, the sooner the financial and the good financial habits, for their own benefits, the greater the Investment should maintain a change at all times, be in of course little white stage had chosen oneself to think likely basically “become famous” fund undertakes cast surely go, although not necessarily earn certainly, but than put a bank to depreciate is stronger.

Introduction to see a few of investment and finance books have watched it again “with rich dad poor dad”, “dog money”, then there is “a random walk down Wall Street”, to read these books, basically for financing and investment of this piece of understand, look after, according to their own choice to see further including economics and accounting books can be conveniently, For personal feelings, to realize wealth freedom, the first thing is to learn to calculate, to clearly understand their own asset allocation, as well as the meaning of each expense, and constantly improve financial knowledge, in order to truly be on the road to financial freedom.

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