Price is what you pay, Value is what you get. – Warren Buffet
After speaking with Shai Dardashti last week, he totally emphasized the importance of practice and homework. Aside from books, getting exposure is important in this day and age. Anyone can tell you that most professionals do a very poor job in picking stocks.
I look at investing as if it were a sport. Not necessarily in the context that I am beating the market by this percentage, but more like we should all have practice before of plays and methods before the day of the competition. Though Shai was in disagreement, I believe in hypothetical buys and sells on investment portfolios. It’s like the homework, we have all received for Pre-Algebra, Algebra, Geometry, and Calculus. It was preparing us for the exam as well as to see if we understood the material.
Test the value investing techniques out there. One of the books below that I critiqued, Intelligent Investor by Benjamin Graham, does provide techniques for the defensive and enterprise investors. The commentary version by Jason Zweig does provide an updated version and places to research stocks and portfolio trackers:
- www.finance.yahoo.com
- www.morningstar.com
- www.magicformulainvesting.com
- http://www.valueinvestorsclub.com/
I want you guys to know the latter two of this list is provided by Joel Greenblatt. Later on today I will review one of his books, The Little Book that Beats the Market. I think it is a great book to start on training wheels and develop who will be the next Buffett, Klarman, Lynch, Munger, and Pabrai, and Munger of our day.
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