Daily Crypto Brief 20/10/2024

Page 24 of the intelligent investor proves that IQ is not what makes an investor successful. He further uses the failures examples of LTCM and Sir Isaac Newton to justify this fact.

Page 41 gives a clear distinction between speculation and investing using a real life example.

Graham: “If you’re young, you should spend more time educating yourself about investing than trying to make money”.

Graham recommends owning between 10 and 30 stocks without being over exposed in a single industry. Don’t invest in just a handful of different stocks.

According to Ibbotson Associates, the leading financial research firm, if you had invested $12,000 in the Standard & Poor’s 500-stock index at the beginning of September 1929, 10 years later you would have had only $7,223 left. But if you had started with a paltry $100 and simply invested another $100 every single month, then by August 1939, your money would have grown to $15,571! That’s the power of disciplined buying—even in the face of the Great Depression and the worst bear market of all time.

Graham strongly advices against investing in new stock issues. Do not invest in IPOs, as they don’t have enough track record to be judged. The information is available to a very small group of individuals, any other thing is speculation. Weighing the evidence objectively, the intelligent investor should conclude that IPO does not stand only for “initial public offering.”

More accurately, it is also shorthand for:

It’s Probably Overpriced,

 Imaginary Profits Only,

Insiders’ Private Opportunity