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Anonymous

07 Jun 2019

General Investing

How might I get started with value investing?

Discussion (3)

What are your thoughts?

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Apart from books, I like to read Berkshire Hathaway's annual reports over the years to understand how they look at being successful in portfolio performance. That said, it's possible to keep reading (and reading) and not action on anything.

Which brings me to my second point.

Form a conviction in a stock, and make a small position in it.

It will:

  1. Accelerate your learning curve - because you are putting skin in the game, you are likely to learn all you can about the stock, even though it's your first time
  2. Because now you have dipped your toes in, the material you read (be it books/annual reports/analyst reports) will be more relevant. You will look for certain data points.
  3. You will also learn the emotional aspect of investing. Monitor how you reach when the stock dips/rises. How often do you check on the price? What is your own investment timeline? All these observations about yourself will help you learn.

Hope this helps, and hope you get started on your investing journey!

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Isaac Chan

06 May 2019

Business at NUS

SReading of books!

Source: amazon.com

I'm sure that one of the books that you might have heard of before is Benjamin Graham's intelligent investor. Overall, I do believe that the book contains many nuggets of wisdom, but it can be quite long and dry at times. What I reccomend would be to just go straight to the commentary by Jason Zweig, who puts Graham's points in today's context. You should be able to cover such content much further.

Source: amazon.com

Another book that should be something simple and easy to pickup is Value Investing for Dummies. The book breaksdown value investing very simply, and contains many nuggets of knowledge that is quite relevant.

Source: amazon.com

I personally think this book is quite helpful too! Based on the simple formula, you are supposed to be able to beat the market consistently, which kind of sounds kind of too good to be true. However, I do believe that there is strong logic to this Magic Formula. Plus, you can finish reading the book in one sitting so I don't think it would do much harm!

Videos

Another approach you can take is to start watching some online videos and courses. Here are just a few that could be helpful, such as "Value Investing: Principles and Approaches"(https://www.youtube.com/watch?v=GhMZ2c4SSlw) and "Joel Greenblatt: Value Investing for Small Investors" (https://www.youtube.com/watch?v=0b3M8edXECo)

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