Wednesday, September 16, 2020

Investing

These are the key notes of investing to understand the Business first before the stock, actually I got these notes from the book "Common Sense In Investing

    • Investing in stocks is to own all of the nation’s publicly held business (at very low cost) 
    • Dividends and Earning growth
    • Index fund - Buy a fund that holds this all-market portfolio, hold it forever
      • No risk of picking individual stocks
      • Lack of short-term excitement
      • Traditional Index fund (TIF) - Like a life time 
    • Last decade alone around $3 trillions swipes in Equity from 28 billions to 4.6 trillions 
    • Simply buy standard & poor’s 500 Index fund or a total stock market index fund, buy and get out and forget 
    • Since 2009, nations Gross Domestic Product GDP has grown at a nominal rate of 6.2%
    • Annual pretax profit of nations corporation grown at rate of 6.3%
    • Correlation of GDP & corporate profit growth is 1% perfect
    • If you choose to play the winners game of owning shares of business 
    • Never try to beat the market and end up playing losers game
    • There are no fund managers who repeatedly beat the markets
    • For investors as a whole, returns decreases as motion increases 
    • No helpers with fees, your profits should include the brokerage and fees and taxes
    • Don’t do something, Just stand there to avoid losers game
    • Funds which we need to know,
      • Growth
      • Growth & Income
      • Aggressive Growth
      • International

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