Key Learnings From Section 1
- Don’t overestimate the skill and wisdom of professionals.
- Take advantage of what you already know.
- Look for opportunities that haven’t yet been discovered and certified by Wall Street—companies that are “off the radar scope.”
- Invest in a house before you invest in a stock
- Invest in companies, not in the stock market
- Ignore short-term fluctuations
- Large profits and Losses can be made in common stocks
- Predicting the economy and short term direction of the stock market is futile.
- The long-term returns from stocks are both relatively predictable and also far superior to the long-term returns from bonds.
- Keeping up with a company in which you own stock is like playing an endless stud-poker hand.
- Common stocks aren’t for everyone, nor even for all phases of a person’s life.
- The average person is exposed to interesting local companies and products years before the professionals.
- Having an edge will help you make money in stocks.
- In the stock market, one in the hand is worth ten in the bush.
