Here's the book.
- Random walk refers to the past performance, unable to predict the future development steps and direction.
- Your return on investment is at least equal to the rate of inflation, just to achieve breakeven.
- The rock theory argues that every investment tool has a solid pillar called "intrinsic value", whether it is ordinary stock or real estate.
- The value depends entirely on the price others are willing to pay.
- The higher the dividend and income growth rate of a stock, the more rational investors are willing to pay higher prices for it.
- The higher the company's growth rate, the longer it lasts, the more dividend distribution, the lower the risk of equities, and the lower the average interest rate, the higher the Rock value (and the price-to-earnings ratio) of its securities.
- No expectation of the future can be verified now
- It's impossible to figure out exact numbers in a never-perfect data.
- All information about a company's earnings, dividends and future performance is automatically reflected in the company's past market price.
- Stock prices tend to move along the already formed trend channel, that is to say, upward trend stocks tend to continue to rise, while sideways-organized stocks tend to continue to consolidate
- Buy only the shares of companies that are expected to gain more than five consecutive years in excess of the average level
- The price paid for a stock should never be higher than its rock value.
- Looking for growth stocks with low P/e ratios. If growth is achieved, it usually results in double returns----both earnings and price-to-earnings ratios rise, resulting in significant investment gains. Beware of the high P/E stocks that have been "discounted" by future growth. If growth does not materialize, losses will be doubly heavy – both earnings and price-to-earnings ratios will fall
- Look for stocks with expected growth rumours, but only if investors are willing to build "castles in the castle" on this rumor
- Every investor must decide between eating well and sleeping incense a balance that is willing to accept, and how to make decisions on your own.
- The long-term return on common stock depends on two critical factors: dividend rate at the time of purchase and future earnings and dividend growth
- History proves that risk and profit always go together.
- The risk of investing in common stock and bonds depends on the duration of the investment. The longer the holding period, the lower the risk
- You have to be clear that your attitude towards risk and your ability to take risks are different.
- "Regular equal investment law" can reduce the risk of stock and bond investment
- "Fool's Investment Law": Investment Index Fund
- Limited selection of stocks, the selected company should be able to maintain a higher than average rate of return growth for at least five consecutive years
- Never force a reasonable rock value for a stock to pay a penny more.
- Trade as little as possible
< walk on Wall Street-the stock market's enduring success Strategy > Reading notes
