| PDF Title | The Psychology of Money |
|---|---|
| Total Page | 253 Pages |
| Author | Morgan Housel |
| Language | English |
| PDF Size | 2.9 MB |
| PDF Link | Available |
Summary
Listed below is the latest download link for The Psychology of Money : Timeless Lessons on Wealth, Greed, and Happiness PDF. Feel free to download it to your computer/mobile device. Visit harriman.house for more information
The Psychology of Money » Timeless Lessons on Wealth, Greed, and Happiness » Book
When I was a teenager, I read Graham’s book to learn about investing. The formulas presented in the book were appealing to me because they explained how to get rich step-by-step. You just need to follow the instructions. The process seemed so simple.
However, when you apply some of these formulas, it becomes apparent that few of them work. As a rule of thumb, Graham recommended purchasing stocks trading for less than their networking assets-basically cash in the bank less all debts. Except for penny stocks accused of accounting fraud, few stocks trade that cheaply anymore.
As one of Graham’s criteria, conservative investors are advised to avoid stocks that trade for more than 1.5 times their book value. According to this rule, you would have mostly owned insurance and bank stocks over the last decade. There is no world in which that is acceptable.