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Stories of wall street characters
1, Bernard? Baruch, aged 94 (1870 August19-1965 June 20th).

● A big investor who can still accumulate tens of millions of dollars of wealth after the US stock market crash 1929.

A legendary venture capitalist, one of the most famous and respected figures who conquered Wall Street and Washington.

1897 started with $300 venture capital, and accumulated 3.2 million yuan of wealth at the age of 32. After the Great Depression of 1929- 1933, he still accumulated tens of millions of dollars in wealth.

Baruch was one of the few "big speculators who both made money and preserved the fruits of victory" in that era.

It is estimated that the highest value of baruch 1929 property may be between 22 million RMB and 25 million USD.

The property list of 193 1 1 shows that baruch's total assets at that time were160,000 US dollars, including 8.7 million US dollars in cash, 3.69 million US dollars in stocks, 3.06 million US dollars in bonds and 550,000 US dollars in loans.

The value of baruch's property is more than $6,543,804,000, and his lifetime contribution to various undertakings is nearly $20 million.

"Lessons from the Greatest Stock Trader of All Time", John Boik, McGraw-Hill, 2004 (the Chinese translation is entitled "Supreme: Experience from the Greatest Stock Trader"), and baruch is listed as one of the five greatest securities traders.

Roy, the father of American mutual funds? Newberg (who was also one of the greatest investors in 18 that I selected) said, "baruch is the investor who can seize the opportunity best. His philosophy is to be good but not greedy.

He never waits for the highest or lowest point.

He buys when the market is weak and sells when the market is firm.

He advocates buying early and selling early. "

"The public is always wrong" is the first essence of baruch's investment philosophy.

A classic story of baruch: One day, he was shining shoes on Wall Street, and the shoeshine boy provided him with the secret of making money from stock trading.

Baruch sold all his stocks as soon as he got back to the office.

"The public is always wrong" is the first essence of baruch's investment philosophy.

Many of his profound knowledge about investment comes from this basic principle.

For example, baruch advocates a very simple standard to distinguish when to buy at a low price and when to sell at a high price: when people cheer for the stock market, you should sell decisively, whether it will continue to rise or not; When the stock is so cheap that no one wants it, you should dare to buy it, whether it will fall again or not.

People are often amazed at baruch's judgment and his ability to seize fleeting opportunities.

The classic "Overpopular Illusion and Crowd Madness" (Extraordinary Popular Illusion and Crowd Madness) was written by Charles MacKay. The first edition was written in 184 1.

This book is baruch's favorite.

The current popularity of this book is largely due to this famous financier.

Baruch encouraged and contributed to the second edition of the book in 1932, and wrote a preface for it.

Baruch praised this book for providing inspiration for studying people's psychological phenomena from various economic activities.

2. Jesse. Jesse Livermore, aged 63 (65438+July 26th, 0877-1940165438+1October 28th).

● The greatest trader in the world

Livermore/Kloc-started trading at the age of 0/5 and is the greatest trader in the world.

His thrilling war history in the American stock market, as well as his amazing willpower and wisdom, are still very admirable.

Lessons from the Greatest Stock Trader of All Time, John Bok, McGraw-Hill, 2004 (the Chinese translation is entitled "Supreme: Experience from the Greatest Stock Trader"), and Livermore is listed as one of the five greatest securities traders.

1940165438+1On October 28th, Livermore shot himself for severe depression.

When I died, I left a note with a meaningful sentence: My life is a failure.

● Memoirs of Stock Notes are recognized as classic investment books by all parties.

Speculators and value investors agree that Memories of a Stock Operator based on Livermore's life is a classic investment book.

This is very, very rare.

Because value investors think good books, speculators often disdain them, and vice versa.

If you only choose 10, the most classic investment book, I believe you will choose memoirs of stock handwriting.

● Jesse Livermore's trading strategy.

Livermore, a reclusive genius, has always used his revolutionary trading strategy.

Livermore's trading strategy was gradually formed in his years of stock trading experience.

Some of the most important strategies can be summarized as follows:

(1) making a lot of money depends not on the fluctuation of the stock price, but on the fluctuation of the main force, that is, on the evaluation of the whole market and market trends.

Few people can judge correctly at the same time and stick to it. Livermore found this the most difficult thing to learn.

But only when stock players really understand this can they make a lot of money.

(2) The essence of Livermore's trading system is based on the study of market trends.

You must wait until the market goes up before you start buying, or wait until the market goes down before you start shorting.

Livermore said that the most powerful and true friend in the world is the market trend.

Livermore always stays outside when the market hesitates or fluctuates.

Livermore spared no effort to repeat these principles: wishful thinking must be completely eliminated; If you don't miss every trading day and speculate every day, you can't succeed; There are only a few opportunities every year, maybe only four or five times, and only these opportunities can you allow yourself to open a position; Beyond the above opportunities, you should let the market gradually brew the next big move.

(3) When operating, you must follow the leader, and there is no need to consider where other stocks will go.

Your focus should be on leading stocks in leading industries and strong industries.

An important feature of leading stocks is to break through the resistance zone and take the lead in creating a new highest price.

To keep a flexible mind, remember that today's leaders are not necessarily leaders two years later.

Just as the fashion of women's clothes, hats and artificial jewelry always changes with time, the stock market has abandoned the past leaders and new leaders have replaced the old ones.

It is very reasonable that the leading stocks in the last bull market can hardly become the leading stocks in the new bull market, because the changes in economic and commercial conditions will generate new trading opportunities with greater expected profits.

(4) Resolutely implement the stop-loss rule.

Livermore kept his first loss within 10%.

Livermore said that the only choice to ensure the continuation of speculation is to carefully protect your capital account, and never allow the losses to be so large as to threaten future operations, so as to stay in the green hills and not be afraid of burning firewood.

(5) Resolutely implement the principle of upward pyramid selling.

Remember, stocks are never too high, too high for you to start buying, or too low for you to start selling.

But after the first transaction, don't make the second one unless the first one is profitable.

Livermore said that if your first transaction is already in a loss state, you should never keep pace with the times and never spread the loss position.

Be sure to engrave this idea deeply in your mind.

Only when the stock price keeps rising can you continue to buy more stocks.

If it is short down, only the stock price conforms to the expected downward trend will it increase all the way.

Livermore likes to short those innovative stocks with low prices.

(6) Avoid buying stocks with low prices.

Big profits are made in big price fluctuations, which usually don't come from low-priced stocks.

3. Benjamin? Benjamin Graham, 82 years old (65438+May 9, 0894-65438+September 2 1, 0976).

● Graham: the father of securities analysis

As a grandmaster, Graham's financial analysis theory and thought have had a great shock in the investment field, affecting almost three generations of important investors. Now dozens of hundreds of millions of investment managers active on Wall Street claim to be Graham's followers, and he enjoys the reputation of "the godfather of Wall Street".

Graham is known as "Dean of Wall Street" and "Father of Securities Analysis".

As the most important thinker in the investment field, his greatest contribution to the investment field is to bring clear logic and rationality to the micro-basic analysis and become the enlightenment master of many successful investors such as Buffett.

With David? David Dodd's Securities Analysis is one of the most classic and influential works in the investment field so far.

1926, Graham teamed up with Jerome? Newman founded an investment company, Graham Newman, and returned to his alma mater, Columbia University, to teach until 1956 retired.

Although Graham's personal assets suffered heavy losses in the stock market crash of 1929, fortunately, Graham Newman Company survived and began to grow.

By the end of 1956, the average annual yield of Graham Newman Company was 17%.

During the 24 years from 1948 to 1972, the fund (GEICO) founded by Graham has increased more than 80 times, with an average annual compound interest growth of more than 20%.

His achievement comes from his innate ability and his lifelong belief in being kind to others.

American magazine * * * (2006) ranks the top ten fund managers in the world, Graham and David. Dodd is called "the father of value investment" and ranks fourth.

● Graham's investment philosophy

Graham's investment philosophy is to buy stocks at a low price for a long time and sell them at a suitable price according to the value analysis method, "so that others can get extra profits."

Graham coined the term "margin of safety" to explain his common sense rule of stock selection, that is, to choose stocks of companies whose stock prices have fallen temporarily, but whose fundamentals are solid in the long run.

The margin of safety of any investment comes from the difference between its purchase price and its intrinsic value. The bigger the difference between the two (the purchase price is lower than the actual value), the more worthwhile the investment is, both in terms of safety and return.

The investment community usually refers to these situations as low-valued stocks (such as P/E ratio, P/B ratio, P/B ratio).

● Graham's investment points

People often remember what Warren Buffett said, "First, don't lose the principal. Second, always remember the first point. " In fact, this is the investment point summarized by Buffett's teacher Graham himself.

Graham's "safety margin" is the essence of value investment.

The "margin of safety" provides a practical guarantee for Graham's investment point "one is not to lose money, the other is to always remember the first point"

4. Gerald Gerald m Loeb, 76 years old? ( 1899- 1975? )

● Investors who have weathered the 1929 stock market crash safely.

Gerald m Loeb was born in San Francisco on 1899. 192 1 Start investing in securities. He worked in E.F. Hutton almost all his life and finally became the vice president of this brokerage company.

Loeb is an investor who survived the 1929 stock market crash safely. He found that the stock market of 1929 actually reached its peak on September 3rd, which was almost two months before the start of the Great Crash.

1935, Loeb's "The Battle of Investment and Survival" described it this way: I foresaw that the stock market peaked at 1929 and sold the stock in time.

What I can recall is this: all the stocks didn't reach the highest price at the same time.

That year, not only did I constantly change the types of stocks I traded, but the number of stocks was also decreasing.

When my stock started to "underperform", I turned to other stocks that performed well.

The end result is that I completely quit the stock market.

Lessons from the greatest stock traders of all time, John Bok, McGraw-Hill, 2004 (Chinese translation is entitled "Supreme: Experience from the Greatest Stock Trader"), Gerald M Loeb is listed as one of the five greatest stock traders.

● One of the most important factors in the stock market is public psychology.

Loeb's entry into my 18 list of the greatest investors may be related to my personal investment preference and investment philosophy.

Personally, I think that the most important factor affecting stock price fluctuation is psychological factor.

Loeb has clearly pointed out in "The Battle of Investment and Survival" published by 1935 that the most important factor in the increasingly formed stock market is public psychology.

Loeb said: "The only but very important factor that forms the form of the securities market is public psychology." Psychological state drives people to buy a stock with 40 times or more PE under one condition, and refuse to buy the same stock with 10 times or less PE under another condition.

Sometimes, the value of stocks has been overvalued by the public for several years, and people have been giving prices far higher than the theoretical valuation.

Similarly, theoretical price undervaluation often lasts for many years.

It doesn't matter what you think, because the market will conclude that the value of the stock is overvalued or undervalued.

Personal feeling: A shares soared in 2006-2007 and plummeted in 2008. It is difficult to have a very reasonable explanation from the fundamental and technical aspects, and it is difficult to draw the conclusion that the stock market is operating normally.

Judging from the public psychology, the market trend is normal.

In 2006-2007, the number of new stock accounts surged, and investors bought stocks crazily. If the historical valuation model does not support excessive prices only based on fundamental analysis, investors will withdraw from the market prematurely (Comrade Zhao XX basically withdrew from the market at 3000, which is the representative of investors. Of course, I don't think there is anything wrong with Comrade Zhao's operation.

After the downward trend formed in 2008, investors regarded stocks as drugs, sold stocks wildly, and the funds retreated from the stock market on a large scale and returned to banks (the growth rate of time deposits in 2008 showed a continuous upward trend), so that when the market fell to the lowest P/E ratio in history, people still seemed reluctant to enter the market, and it seemed that they still could not see where the final bottom of the market was.

The real reason behind these phenomena is public psychology.

Roy Roy R. Neuberger died at the age of 96.

● Maximum profit record: 68 years of investment career, and never lost a year.

Roy, the father of American mutual funds? Roy R. Roy R. newberg, in his 68-year investment career, has never lost a year.

My personal feeling: I'm afraid this history is unprecedented and no one can break it.

Buffett's investment career in the past 5 1 year also suffered a loss for one year.

The founder of American "Protector Fund Company" is the pioneer of joint-stock funds and the father of American open-end funds.

1929 was the first investor to set foot on Wall Street. He is the only investor in the United States who has experienced both the 1929 Great Depression and the 1987 stock market crash. He not only avoided losses twice, but also gained considerable benefits in the catastrophe.

Newberg didn't go to university or business school, and was called the winner of the century longevity stock market by the insiders.

His success is not only great wealth, but also a long life and a happy family.

● Roy? Ten Principles of Successful Investment in newberg

Newberg summed up ten most important rules from hundreds of practical lessons.

In nearly 70 years of investment transactions, he has always adhered to safety, and these ten rules have benefited him a lot.

First, know yourself.

Newberg said: I think my own qualities are suitable for working on Wall Street.

When I was a buyer of B. Altman, I converted all the stocks into cash, and then converted the cash into stocks.

For me, trading is more about instinct, talent and decisiveness.

Not as patient as long-term investment.

After analyzing various factors, if you can make a favorable decision, then you are the kind of person who is suitable for entering the market.

Test your temperament and temper.

Are you speculative? Do you feel uneasy about the risk? You have to answer yourself completely honestly.

When you make a judgment, you should be calm and calm. Being calm doesn't mean being slow.

Sometimes one moves quickly.

Calm is to make a prudent judgment according to the actual situation.

If you are prepared in advance, it is not a problem to do it quickly.

If you feel wrong, quit quickly, because the stock market doesn't take a long time to go through the formalities like real estate to correct it.

You can run away from it at any time.

You need more energy, the ability to respond quickly to numbers, and more importantly, common sense.

You should be interested in what you do.

At first I was interested in this market, not for money, but because I didn't want to lose, I wanted to win.

The success of investors is based on existing knowledge and experience.

You'd better make professional investment in your familiar field. If you know little about it, or don't analyze the company and details at all, you'd better stay away from it.

The author's feeling: the biggest enemy in life is oneself, and the stock market is designed according to the weakness of human nature, which is difficult to change.

Only by overcoming one's human weakness can one defeat oneself and become a 10% profiter in the stock market.

Second, learn from successful investors.

Newberg said: Looking back at those successful investors, it is obvious that they are different and even contradictory, but they are all successful.

You can learn from the experience of successful investors, but don't follow blindly.

Because of your personality, your needs are different from others.

You can learn from success and failure and choose something that suits you and your surroundings.

The top successful investors recommended by newberg are: Warren? Buffett and Benjamin? Graham Peter. Lynch George. Soros and Jimmy? Rogers.

The author's sentiment: The first of my most important investment sentiment is "If you want to be a leader, learn from the leader first", and the third is "All roads lead to Rome, and all methods can make money". The way others succeed may not be suitable for you.

The most important thing is to find a method that suits you.

Third, the idea of "sheep market"

Newberg said: The influence of individual investors on a stock sometimes makes it fluctuate by 10 percentage point, but it is only a moment, usually a day, not more than a week.

This market is neither bull nor bear.

I call this market "sheep market".

Sometimes sheep are killed, and sometimes they are cut off.

Sometimes you are lucky enough to escape and keep the wool.

The "sheep market" is somewhat similar to the fashion world.

Fashion masters design new fashions, second-rate designers copy them, and thousands of people chase them, so skirts are short and long.

Don't underestimate the role of psychology in stocks. Buyers are more nervous than sellers, and vice versa.

In addition to economic statistics and securities analysis, there are many factors that affect the judgment of buyers and sellers. A small headache can lead to wrong sales.

In the sheep market, people will think hard about what most people will do.

They believe that most people will overcome difficulties and find a favorable plan.

It's dangerous to think like this, and you will miss the opportunity.

Imagine that most people are an institutional group, and sometimes they will tie each other down and become their own victims.

The author's sentiment: I think psychological factors are the most important factors affecting stock price fluctuations, and investors' psychological fluctuations have created 90% of the market.

6. Buffett (male name)

7. Soros

Don't say anything familiar.

Their greatness is not because they can spend money to keep warm, but because they love the world.