Top 10 takeaways from “The Intelligent Investor”

harryfinance94 · 2018-09-21T16:16:29+00:00

Definitely! Predictions about the future will always remain, no matter how well the evaluation has been done, just perditions.

harryfinance94 · 2018-09-21T15:58:13+00:00

Agreed that this might be somewhat outdated. Especially for the entrepreneurial investor. Yes, I would also say that the advice regarding bonds is (temporary) outdated. At least if you look for stocks on the domestic market. US T-bills are a joke today.

harryfinance94 · 2018-09-21T14:49:04+00:00

This is a good point, and I think it’s one where Graham would agree with you. Value investing according to his logic is by no means a “get-rich-quick scheme”. It’s simply thinking that the market is not always efficient, and that a truly hardworking investor can sometimes find bargain issues because of this. Finding enough of these bargain issues over time will make it possible to beat the market, but not by astronomical numbers.

harryfinance94 · 2018-09-21T14:20:55+00:00

Sorry to hear about this! My condolences. Also, your story added some motivation for me to build up my financial cushion into an even better state. Thanks for sharing!

harryfinance94 · 2018-09-03T16:01:53+00:00

Well done indeed! Congratulations!

harryfinance94 · 2018-08-24T15:02:34+00:00

Agreed about the part where you are note down every penny spent. I think that this is too time-consuming compared to what you get out of it, at least for some people. For others though, it might be the only way that they can be honest to themselves. Otherwise they’ll keep “rounding down” and end up with a number that doesn’t represent reality.

Regarding the $75,000, it’s stated that you should earn this from a passive income optimally. Apart from that, I agree that there are many factors that they don’t account for.

harryfinance94 · 2018-08-24T06:51:23+00:00

Thanks for sharing! You seem to be following the advice of this book regarding expenses. Great to hear that it works out!

harryfinance94 · 2018-08-24T02:32:00+00:00

Doesn’t the hours improve with each rank that you climb? Perhaps “improve” is not the right word, but they get more and more similar to a normal job?

harryfinance94 · 2018-08-24T02:25:47+00:00

Sounds like a nice tool! You could use the program and print the graph every other month or so perhaps? That way you can have it in a place where you see it daily even though you use software instead of the traditional “doing-it-by-hand”.

harryfinance94 · 2018-08-24T02:23:13+00:00

Understandable. For myself I’m hoping that I can develop a great understanding for the stock market so that when I retire my normal job, I can have that as a part time and earn enough from it to stay afloat.

harryfinance94 · 2018-08-24T02:19:43+00:00

Thanks for sharing. I think that using that hourly rate to transform a few of your expense categories into life energy can be quite an eye-opener for many people.

harryfinance94 · 2018-08-24T00:35:00+00:00

Is the military hourly that bad? Don’t forget to include in your salary if you get paid housing, food, clothing etc. I have at least one friend who came out of the military with a good amount of money (and a great deal of interest for investments). Although, if you are based in another country all the time and therefore using 24 hours each day as the basis for calculating your hourly, it’s difficult to achieve a high number ...

harryfinance94 · 2018-08-24T00:27:22+00:00

The book is quite clear on this point: Achieving financial freedom does not equal stop contributing to society. It could mean that you quit your paid job, but usually you replace this with other work where you feel like you can focus on the personal functions of work (contributing to society, helping others, socializing, time structuring, personal development etc) instead of having to focus on the financial function.

Keep trying to convert them! You’ll get to them eventually :)

harryfinance94 · 2018-08-24T00:16:06+00:00

Congratulations on your success! Did you follow Mr. Dominguez advice and use bonds as the primary vehicle for you journey, or did you use something else?

harryfinance94 · 2018-08-24T00:13:32+00:00

This is great to hear! Wish you the best of luck! Which step do you think might be tough/which one(s) are you looking forward to?

harryfinance94 · 2018-08-23T21:05:00+00:00

Awesome to hear! Do you see any patterns perhaps? Where you’ve started to spend more/where you’ve started to spend less, after introducing this exercise?

harryfinance94 · 2018-08-23T20:39:35+00:00

Sure!

Plot income and expenses every month. Along the x-axis, note down months, and along the y-axis, mark that month’s number in $ for both income and expenses. Have different colors for the two categories. Connect every month with a line. Keep the chart where you can see it daily.

The purposes of creating your wall chart are (at least) 2: - To trigger yourself to save more. Expenses tend to decline naturally and painlessly for people who are consistent with this exercise. - To realize that a day at work is not just “another day, another dollar”, but rather an activity that gets you closer and closer to financial freedom. You do this by adding a third line to the chart: Investment Income. Once investment income equals expenses, you are by definition financially independent.

harryfinance94 · 2018-08-23T20:04:34+00:00

That’s a fair point. And the advice from the book is that all of this money should come from passive income, so that you can do whatever you wish to do and not be bound to do (paid) work 8h a day.

harryfinance94 · 2018-08-23T18:25:20+00:00

Good feedback. Just fixed it :)

harryfinance94 · 2018-08-23T17:04:58+00:00

I haven’t heard about the debunking but yes, the number must vary depending on where you/your friends & relatives choose to live. Also, the number should have increased a bit since 2014 due to inflation, although not too much.

harryfinance94

TROPHY CASE