The Perfect Investment
Welcome to the 180 new members who have joined us since the last Free Issue. Join the 3700+ others who are receiving awesome stories related to investing and life from brilliant books
Today at a Glance:
Lesson From the Book: The Perfect Investment
Tweet: Investing Style and Perspectives
Quote from Ben Carlson
Snippets: 4 Snippets from different books
THE PERFECT INVESTMENT (Book) - A Must read book
No single investment is right for everyone. The best investments for you depend on personal factors—your goals, your personality, your existing holdings, your credit card balance… The list is endless.
I often meet people who believe they’re properly diversified because they own fifteen or twenty mutual funds. But different funds can have very similar investment strategies. And when the value of one fund falls, the shares of funds with similar strategies will fall as well.
Remember, you’re not a collector. You’re an investor. You want investments that work together to close the gap between you and your financial goals. You also need to make sure that what you own doesn’t expose you to more risk than you can handle.
The researchers recommend something a bit stronger: “Do not expect the fund’s quoted past performance to continue in the future. Our studies show that mutual funds that have outperformed their peers in the past generally do not outperform them in the future. Strong past performance is often a matter of chance.
Trying to figure out which fund will lead the pack during the next quarter or next year or next decade is a fool’s game. Focus instead on finding a low-cost investment that you can stick with over the long haul.
(For a detailed key takeaway upgrade to a paid plan)
One Tweet
One Quote
"If you torture the data long enough it’s bound to tell you exactly what you want to hear. Complexity invites data-mining, over-optimization and seeing correlation where there is no causation. Right or wrong, simplifying makes it harder to game your own system.''
Interesting Books Snippets/tweets shared during the Week
1. Long-term investing works because there is less competition for really valuable bits of information. (Book)
2. Investment Process of Rajashekar Iyer (Book)
3. Investing learning from Madhusudan Kela (Book)
4. Capital Allocation Capability of Management is key (Book)
Do Join Paid Plan if you want to receive detailed key takeaways from the books I am reading, Key Takeaways from the best investing blogs and articles, and small investing clips from great investors’ hour-long interviews (Read Freemium Issue)
Thanks for reading.
See you again next week.
- Dhaval (Investment Books)
If you enjoyed this, please share it with your friend.