Wisdom from the physical books owned by Mubarak Hussain Zawriya
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The Battle For Investment Survival
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Book name: The Battle For Investment Survival. By: Gerald M. Loeb. Year: 1935
1. The real objective of investment is fundamentally to store excess current purchasing power for future use. "Investment" is an effort to obtain, in addition, a rental from others for the temporary use of capital. "Speculation" means using the capital in such a manner that its spending power is not only preserved but also increased, through the realization of profits in the form of dividends, or capital gain or both.
Successful investment is a battle for financial survival. This contention would disprove itself if the difficulties could be explained away so easily. Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival.
2. The person who studies a problem from every angle and defines the risks, aims and possibilities correctly before he starts is more than halfway to his goal.
[Sun Tzu too said same thing in his book 'Art of War', "A winning commander will calculate before the battle begins, and will attack only when if he can win."]
3. Totally ideal "investment" is as totally non-existent.
4. It is not enough to buy something cheap if it stays cheap. One must buy it just as it starts to get dearer.
5. Trades should never be closed unless a good reason is at hand. But many "long-pull" traders ignore a sign of a change of trend because they feel it is temporary. Often they are right but eventually they are wrong, and usually at great cost.
[Remember a sign appears before the actual change.]
6. Over-diversification acts as a poor protection against lack of knowledge. It doesn't help one's account to feel sure one is short theoretically overvalued stocks that are currently rising or long those theoretically undervalued but actually sinking in price.
7. Unpredictable news developments can change the complexions of things without warning.
8. Think in terms of ultimate rather than current results. It is more feasible to try to follow profitable a trend upward or downward than to attempt to determine the price level.
9. It always was and always will be the power to understand and the ability to act that turns information into profits.
10. Cutting losses is the one and only rule of the markets that can be taught with the assurance that it is always the correct thing to do.
1. The real objective of investment is fundamentally to store excess current purchasing power for future use. "Investment" is an effort to obtain, in addition, a rental from others for the temporary use of capital. "Speculation" means using the capital in such a manner that its spending power is not only preserved but also increased, through the realization of profits in the form of dividends, or capital gain or both.
Successful investment is a battle for financial survival. This contention would disprove itself if the difficulties could be explained away so easily. Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival.
2. The person who studies a problem from every angle and defines the risks, aims and possibilities correctly before he starts is more than halfway to his goal.
[Sun Tzu too said same thing in his book 'Art of War', "A winning commander will calculate before the battle begins, and will attack only when if he can win."]
3. Totally ideal "investment" is as totally non-existent.
4. It is not enough to buy something cheap if it stays cheap. One must buy it just as it starts to get dearer.
5. Trades should never be closed unless a good reason is at hand. But many "long-pull" traders ignore a sign of a change of trend because they feel it is temporary. Often they are right but eventually they are wrong, and usually at great cost.
[Remember a sign appears before the actual change.]
6. Over-diversification acts as a poor protection against lack of knowledge. It doesn't help one's account to feel sure one is short theoretically overvalued stocks that are currently rising or long those theoretically undervalued but actually sinking in price.
7. Unpredictable news developments can change the complexions of things without warning.
8. Think in terms of ultimate rather than current results. It is more feasible to try to follow profitable a trend upward or downward than to attempt to determine the price level.
9. It always was and always will be the power to understand and the ability to act that turns information into profits.
10. Cutting losses is the one and only rule of the markets that can be taught with the assurance that it is always the correct thing to do.