[Book Introduction] I Summarized 50 Masterpieces of Investment into One Book 9/10
Rakuten Securities Toshiru Academy: From this month's money books
I have summarized them and written an article.
Continuing on, I am using a Russian Matryoshka-style method where I further summarize a book that has already been "summarized."
Author: Tazaki
Published: February 2, 2024, 1st Edition
Book 41: Super Stock Discovery Method: Learn 30,000 Hours of Trading Techniques in 3 Hours
Pareto Principle: One or two variables that no one pays attention to
It means that "there is no value in what everyone knows." The 1% who have gained wealth from the market are those who do things differently from others. They focus on "just one or two variables" that make a difference and change the game.
The author cites the Pareto Principle, stating that 80% of the effort in investment analysis only has a 20% impact on the results. Therefore, extracting only the necessary information and focusing on it—that is, focusing 100% on the "20% of important variables"—is the key to investment success.
Book 42: Stock Formulas Taught by a Legendary Fund Manager
You should not buy stocks when they are cheap
One of the most memorable phrases is "You should not buy stocks when they are cheap," which goes against common human intuition. Stocks can be classified as either "new highs or everything else," and the author places great importance on "new highs" that have just started to gain popularity.
The author is Noriyuki Hayashi, the former head of Japanese equity management at the Abu Dhabi Investment Authority, one of the world's largest sovereign wealth funds. You often hear on YouTube that reports written by this person are being released for free.
Book 43: Revised Edition: Winning Investment, Losing-Proof Investment
The benefits of individual investors engaging in small-cap stock investment
One benefit is the potential to gain significant profits by identifying the timing when small-cap stocks attract attention, purchasing them, and holding them long-term. Small-cap stocks are often specialized in specific products or services, so if an event occurs that brings attention to that field, there is a high possibility that their valuation will rise rapidly.
It states that many stocks with the potential for massive growth exist among small-cap stocks. In particular, the small-cap stock market has fewer investors watching it, and their financial resources are limited, which increases market inefficiency. The gap between price and reality created by this inefficiency becomes an investment opportunity.
44th Book: [New Edition] Everything You Need to Know About Finance in One Book
We are living in an unprecedented era
The fact that interest rates hit zero and then turned negative could be called the biggest event in financial history. Japan, which had suffered from long-term deflation, took the step of implementing the world's first zero-interest-rate policy in 1999. Then, in 2016, negative interest rates were adopted.
The original form of finance, where interest is generated whenever money is lent or borrowed, has changed, and depending on how it is reversed, there is a danger that it could lead to national bankruptcy due to increased interest payments or the expansion of losses at financial institutions.
45th Book: Finance Explained Very Roughly for People with 'Zero Knowledge'
Many readers may wonder how finance differs from accounting. While accounting deals with 'profits' from the 'past to the present,' finance deals with 'future' 'cash flow.'
In investment, while 'past performance' is of course important, thinking about 'what will happen in the future' becomes crucial, so finance is necessary knowledge.
Mini-summary
'You should not buy stocks when they are cheap' is catchy. Although 'buy low, sell high' is the essence of investment, the opposite is shocking, but this refers to momentum investing. 'Buy low, sell high' is an investment that waits for the future, while 'You should not buy stocks when they are cheap' is an investment from the present to the future, which may make it easier to generate profits quickly.
Summary Magazine
Author's YouTube: Investment Book Channel You Can Understand by Listening
いいなと思ったら応援しよう！
いただいたサポートを、別のクリエイターのために、応援します。この記事は noteマネー にピックアップされました
