Is Reddit right? Would reading The Intelligent Investor as

>>1071457

The problem here is that it's reddit- these guys are overgrown children.

Learning is always good. Everything you can learn in the classroom, you can teach yourself.

And then when it's time for class? If you already know everything, you'll get an A+

These guys are stupid, children, they need a professor to hold their hand and baby them

Reddit is right, but for the wrong reasons.

If you can't read basic financial statements (balance sheet, income statement, cash flow), you'll be lost when you come to basic terms in the book.

>>1071457
The advice they're giving him is poor, but they're right in that you shouldn't read The Intelligent Investor if you don't understand the industry and are not interested in it.

>>1071457
I'm doing that right now

The last time graham touched the book was in the 70s(?). Everyone espouses that the principles still apply today, but the analysis is about events that happened decades ago in a totally different environment, so it's boring. I also wonder how much of the information is outdated.

I do have the newest edition with modern commentary in between chapters. And I feel like I understand the commentary 10x more than the actual book, probably because reddit is right and the book isn't written for the general public.

>>1071467
Those are khan academy tier terms. I've taken one business class at a community college and I know what those are.

>people hate people who push themselves
Rofl

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ITT: t.poorfag
Guess how many people wish they started earlier? or had more time? Time is the most valuable commodity, The rich don't buy private jets for shits n giggles they do it because their time is worth more. The earlier you start the easier it gets.

>>1071479
>Everyone espouses that the principles still apply today,
Graham doesn't.

> am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when our textbook "Graham and Dodd" was first published; but the situation has changed a great deal since then. In the old days any well-trained security analyst could do a good professional job of selecting undervalued issues through detailed studies; but in the light of the enormous amount of research now being carried on, I doubt whether in most cases such extensive efforts will generate sufficiently superior selections to justify their cost. To that very limited extent I'm on the side of the "efficient market" school of thought now generally accepted by the professors.

He said that in the 70s. Now it's even harder.

OP, don't bother with The Intelligent Investor. It's always easy to spot the uber casuals on /biz/ because they recommend The Intelligent Investor. Obviously all they did was google "good investment books" without doing any further reading and research.

>>1072659
What are some good investing and finance books to read?

>>1072668
There are plenty of good recommendations on this page.

https://www.bogleheads.org/wiki/Books:_recommendations_and_reviews

bogleheads.org/wiki is a good place to start for newbies anyway

>>1072659
Isn't he talking about his other book security analysis?

>>1072678
He's talking about his methods in general not a specific book. His methods are outlined in his books.

>>1072687
Yeah that has to be right, I'm not very far into the intelligent investor but he said a lot about finding undervalued stocks.

So is picking stocks as braindead as "cheap index funds when the market is down, lol" these days?

>>1072695
Nah, picking stocks is literally a loser's games. There is empirical evidence to back this up. But index fund investing has been shown to produce positive returns. It's the best thing to do really.

>>1072706

>Nah, picking stocks is literally a loser's games.
>index fund investing has been shown to produce positive returns

Where's the diversification, then?

I'm only starting to think about investing, watching some classes etc, so any information is valuable. I understand the general concept of diversification, but am not sure how to apply it with regards to things like index funds.

why is reddit always so passive aggressive
jeez

>>1071457
well its hard to understand without basics in fundamental analysis

>>1072748

Err your diversification is into bonds. And maybe dogshit like gold or bitcoins.

>>1072763

Why would one diversify into dogshit?

>>1072748
not sure if trolling but index funds ARE all the diversification you need.

The chance of the top 500 companies all going under is impossible.

>>1072748
An index fund offers instant diversification - being spread across X instead of locking into a smaller number.

You should be expected to also hold some cash, hold some property and there are overseas index funds for overall diversification.

Theres plenty of diversification in an index fund, you can always buy into specific companies if you are taking a view on the market as well.

>>1072770

Not trolling, just wasn't thinking desu.

>>1072771

Thanks.

So, basically, the index covers the top 500 companies, and if I want, I can buy some additional stock of any companies I choose. That would still be pretty safe as long as enough is in the index fund and I don't make absolutely retarded choices.

I also may have enough money to get into real-estate locally (I'm in Eastern Europe).

If I really wanna run wild with it, I suppose a small amount could go into high-risk gamblish nonsense.

Anything wrong with this general plan?

>>1072782
This would be wise.

you want the vast majority of your portfolio to be index funds. I am going to assume you are 20-30 years old, having 80-100% index fund portfolio is a good choice

>>1072788
>I am going to assume you are 20-30 years old

Just turned 29. Never invested in my life, first because I didn't have anything to invest and later on because I was spending it like crazy.

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reddit is literal shit

>>1072808
>first because I didn't have anything to invest and later on because I was spending it like crazy.

Well you have proven you are certainly Eastern European without a doubt.

>>1072810
>Well you have proven you are certainly Eastern European without a doubt.

You should see me squat.

>>1072813
https://www.youtube.com/watch?v=JJpaDTQujMg

Did you graduate this school?

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>>1072820

With honors motherfucker. But more to the point, am I reading pic related right? Does it say that all these index funds gave only around 2% returns over the last year? I was under the impression that it would be between 5% and 10%.

>>1072748
Index Funds are diversified. Look up the three fund portfolio. It's 3 total market funds. You end up owning thousands of securities over multiple asset classes in multiple regions for very cheap.

>total domestic stocks
>total foreign stocks
>total domestic bonds
It's ideal for the newbies.

>>1072858
>Does it say that all these index funds gave only around 2% returns over the last year? I was under the impression that it would be between 5% and 10%.

It's been a bad year(recently anyway).

Index Funds provide you with 5-10% returns per year OVER THE LONG RUN, you are somewhat correct.

Basically some years you will have -25% returns but then the 3 years following that you'll get 15% returns per year. In the long run averaging out ~8% p/a.

>>1072874

I see, thanks.

>>1072866
>Look up the three fund portfolio

>He isn't all in VOO

laughing nigerians.png

WOW
those faggots definitely sound like they went to business school
jesus christ
>u should spend freshmen year being retarded, drunk, and fucking around breeeh
>intelligent investor is as hard to understand as quantum mechanics, it definitely isn't as basic as it gets
>im a fat balding middle aged nobody and i have to compensate and show off on the internet

sounds like b-school alright

Tbh senpai

>>1071457
The guy in the reddit thread is clearly exaggerating their own job and responsibilities as redditors do. They are correct that knowing accounting is important before doing fundamental analysis.

>>1072886
>VOO
500 american stocks compared to thousands of stocks and bonds all over the world is inferior

>>1074614
The 500 American ones will provide you with better returns

discouraging an eager 19 year old to read a book that I was able to understand when I was 19... rebbit has really turned into a turbo pleb zone

>>1072748
To handle the market fucking crashing down on you because of systemic risk, you get bonds with whatever you are already doing. Don't run off and buy tons of individual stocks, though.

>>1074677
>Bonds
>For a young man

Lol ok grandad.

>>1071457
Wow these guys are D bags. If I listened to all those faggots who told me I couldn't do research or do this or that while I was "just an undergrad" or "just a freshman" I would have gotten no where.

>>1075107
Sounds like they're just trolling tb.h

It's just the type of answer you give someone so you don't say "Yeah study hard all day and network 20 hours a week and then maybe get a good job up there"

>>1075114
Yeah even still that advice is bad in general. People are like sheep, if you tell them they can't do something then they will likely just give up. If you instead answer neutrally or with some form of guidance then they are much more likely to succeed at whatever goal they have.

As much as I hate those "your powers are limitless if you believe" motivational bullshit quotes, they are correct. People are capable of much more than they think.

someone give opinions on >>1074801 pls

>>1075120
Yeah but most people don't want to bother with that shit.

It's like an accomplished bodybuilder getting asked for advice, he'll just say "Yeah just lift weights and eat some food, idk man just look it up on the internet" to a newbie.

>>1071457
>reddit
>right

>>1071457
Take that stupid ass advice and see how it works for you.

Reddit is more full of shit than 4chan and people upvote shit just because they like what they hear, not because what's being said is correct.

Reddit is only good if you need advice in losing respect from women and being a passive aggressive cuck.

>>1071502
It really is the most valuable commodity. It's why people like me use calendars and to-do lists all fucking day.

>>1071457
Fucking normies