this is a great book where every investor must read at least 3 times!!!
this book teach us how to be a "safe" investor...
thats mean you have earn a reasonable return with the lowest cost and lowest risk...
some "aggressive" investor always think that 15% p.a is not enough!!!
bare in mind...any return above reasonable range will come with extreme risk...
you must know how to manage these risks before you try to attempt above REASONABLE return!!
market sentiment and reaction change time to time...
some aggressive method which had helped to stay more than 15% last time might not work this time and in the future...
**sometimes blue chip tend to outperform small cap but not ALWAYS...
**sometimes DIVIDEND stock tend to outperform GROW stock with low dividend...
**sometimes low PE tend to outperform high PE...
so you must know the when and how to use all the investing method SAFELY!!!
get yourself good safety margin...
SAFETY margin doesn't mean all about the price you pay for the stock...
GRAHAM says...
we have to look after the quality of the earning, financial position and risk...
then for the pricing part...
low PE and Price to book value...to make sure we dont overpaid the stock!!
***use average number to get a better view on all the variables...average to help us to exclude the seasonal affect and give better picture how the company perform...
feel glad that my investment policy adopt most of the SAFETY precaution step...
its help to keep myself away from those DANGEROUS bomb...
at the end...
find yourself the best suit and safest way of investing for yourself...
happy investing...
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