Therefore, in order to make investment better, continuous learning is inevitable. In the process of learning, reading is essential.
Peter Lynch is the best Public Offering of Fund manager in the 20th century, and can be compared with Warren Buffett. His classic book is one of the required books for investment introduction.
Peter Lynch teaches you how to manage your finances, which is aimed at high school students and investors who are new investors. However, for investors at other levels, the number of readings will definitely make them gain something, because as Peter Lynch said, the root of investment success lies in basic rationality and common sense, not profound principles.
This book is mainly divided into four chapters, from the past lives of American stock market, the basic principle of stock market investment, the life cycle of listed companies, the secret of success of listed companies, and the development history of American stock market and American capital written in vivid language, which gives investors inspiration.
The following are some experiences I shared after reading this book.
The sooner you establish investment awareness, the better. If you don't realize the importance of investment until after middle age, you miss the precious opportunity of investment, because the wealth before that could have been preserved and increased faster because of investment.
I have mentioned financial investment to many people around me, but their response is that there is no money, and financial management is a matter for the rich. But in fact, these people who say they have no money often travel around or go shopping in a year. This is a common problem of many people in modern times. Even if they have a surplus, they will not invest.
What if there is no money to invest? That is economy. As Peter Lynch said, whether it is $65,438+00 or $65,438+000 per month, we should try our best to save money and invest regularly. If you can save and invest as early as possible, one day you can live on money alone. But if you can't get into the habit of saving and investing regularly, all this is impossible.
When it comes to investment, some people may ask, do I count my money in the bank as an investment? The answer is, of course.
Bank savings is an investment. Its advantage is that it can pay interest and recover the principal in a short time. But the disadvantage is the low interest rate. Sometimes the interest on savings accounts cannot exceed the inflation rate.
Saving is a good choice when you need to withdraw cash for payment at any time, temporarily deposit the money in the bank, and then invest it in other places after accumulating to a certain extent. But in the long run, saving means little.
Besides bank savings, this book also introduces five major investment categories: collectible investment, real estate investment, bond investment, stock investment and fund investment.
Collect investment. In addition to mastering the collected items, we should also be good at their market value. For example, the philatelic market flourished in the 1990s. Investing in stamps requires a certain understanding of the stamps themselves (such as distinguishing authenticity) and the stamp market. Only in this way can we effectively invest in stamps.
Real estate investment. This is not for you to speculate in real estate, but for modern people, the house is just needed. Secondly, you can live and wait for its appreciation. Of course, some people will say, forget about real estate investment. Now that the house price is so high, it is good to buy a suite for a lifetime. That's true, but isn't buying a suite for life an investment? Besides, investment is a lifetime thing, isn't it?
Bond investment. In many people's minds, bonds are less risky than stocks. Once held, there is no risk. But this concept is wrong. Holding bonds is also risky. In this book, Peter Lynch clearly pointed out the three major risks of bonds:
(1) If the bonds are sold before the maturity date, the principal may not be fully recovered, because the bonds will rise and fall out of order every day. If you buy high and sell low, you will naturally lose money.
(2) The bond issuer goes bankrupt and the principal cannot be repaid. Especially buying junk bonds.
(3) The biggest risk is that the profit is small and it is difficult to resist inflation for a long time.
Stock investment, Peter Lynch thinks this is the best investment besides the house. Speaking of stocks, many people will say that investing in stocks is like gambling, and the stock market is a casino. It seems that many people in the United States think so, and Peter Lynch's best response to this is: If the stock market is a casino, why is it still so popular for so many years and the return is so high?
When people keep losing money in the stock market, it is not the fault of the stock market. The value of stocks usually rises over time. 99% of the cases of losses are because investors can't make investment plans, buy at high prices, are impatient or too scared when adjusting stocks, and often sell at low prices. Their essence is "buy high and sell low".
Fund investment is the most suitable investment for people who want to invest in stocks but don't know how to analyze them. At the same time, it is also suitable for people who want to participate in stock investment and think that the stock is too expensive (for example, some people like Maotai, but the stock price of Maotai is too high, so they buy 100 shares). Let a professional fund manager manage the investment, and you can invest in many stocks at the same time, which is much lower than the risk of buying only one.
Since the spring of this year, the big A market has been moving forward in the shock adjustment. For such a market situation, many investors and citizens who entered the market last year and this year began to panic. For example, not long ago, I had a friend who had held the fund for almost two years. After being tossed about by the market in the spring, there is little income left. Finally, he really couldn't bear to redeem the fund he held. Knowing this, I can only respond with a sigh.
For investors who have not studied systematically and like chasing the wind, one of the biggest mistakes is to fight in stocks and funds, hoping to avoid adjustment. There is also a mistake, that is, holding a large sum of money in hand, delaying admission, but expecting the next adjustment to come and picking up bargains. While trying to avoid the bear market by timing, people often miss the opportunity to dance with the bull market.
Therefore, the most important thing in investing is the investor's mentality. The long-term bear market is a great test of everyone's patience, enough to make the most experienced investors anxious. Of course, patience is a virtue, but if the stock you hold is no longer in its golden age, your patience may not be rewarded in the end.
In addition to patience, investment mentality requires confidence and courage in terms of my personal understanding and current actual feelings. Confidence is not only for the company it holds, but also for the whole big market environment. Courage is like Peter Lynch's useful reminder to investors in his book: Seize the opportunity as keenly and boldly as a police dog, unless the dangerous facts are in front of you.
As I mentioned earlier, there were many new shareholders and citizens pouring in last year and this year, especially the latter. The popularity of funds has made many fund managers suddenly become hot online search figures. For example, many people have been buying funds from Zhang Kun Yifangda, and even organized an Aikun support club, which made Brother Kun suddenly move from the financial circle to the film circle.
Funds and stocks are not antagonistic, and many investors buy them. This book not only gives many experiences and suggestions on stock investment, but also gives nine suggestions on fund investment. Combined with the domestic environment, I have selected five suggestions that I personally think are the most important:
(1) It is best for fund companies to buy directly from fund companies.
I quite agree with this, because it is the most affordable way to buy. Before 2020, they were all bought on Alipay or egg rolls. I bought it directly from the fund company. Generally, I can get a discount of 0% or 0. 1% on the subscription fee.
(2) It is difficult to buy a good car for the right fund, but the fund has a historical performance, and the fund manager makes a reference.
(3) Why risk investing in new funds instead of choosing old funds with excellent historical performance?
It is better to buy the old than the new, which is not completely effective in the field of fund investment. Especially for new investors, it is not that new funds cannot be bought or touched, but should be treated with caution in combination with various factors.
(4) Some investors are used to switching between different funds frequently, hoping to choose one with the best performance. In fact, doing so often gets twice the result with half the effort. It is best to choose a fund with excellent historical performance, buy it and hold it for a long time.
If you think learning the basics of investment is boring, those investment ideas make you feel boring. Personally, I think Peter Lynch's book is most suitable for you, because this master is good at making boring investment ideas easy to understand and read very smoothly.
How much money a person can accumulate in his life does not depend on how much money you earn, but on how you invest and manage your finances. Thank you to the translators of this book, Mr. Song Sanjiang and Ms. Luo Zhifang, for giving us the honor to appreciate Peter's classic theory. While studying, remember to translate what Mr. Song Sanjiang said in the postscript of this book: the national conditions are different, so you need to remember the master's investment method and use it carefully.