It’s not often I run across a book that causes me to completely rethink my stock market strategies. I have traded stocks for over a decade now and while I have done alright for myself over the years, I have never been confident enough to let my stocks sit without constantly checking the market to see if I had lost or gained for the day. I used to think it took courage to hold a stock while the price is falling and every ounce in your body is telling you to sell now! I have to admit, I have sold in these situations only to see the stock market rebound days later.
In Benjamin Graham’s book, The Intelligent Investor, he teaches you to ignore what he calls “Mr. Market.” Mr. Market is the persona Graham created to explain the random fluctuations in the stock market. While following Graham’s guidelines outlined in this book, I have learned to steer clear of over priced stocks and to become an intelligent investor who can ignore market fluctuations. You too can learn how to value stocks and ignore Mr. Market. After reading The Intelligent Investor, you won’t need to read the news or worry about random guru’s or advisor’s telling you to dump, because you will have already done your homework ahead of time and will know the true value of your holdings. All it takes is patience, motivation, and the willingness to study and learn Graham’s teachings. I am confident that after reading this, you too will be able to sleep at night. The next time someone asks you what the stock market is doing, just respond “who cares.”
Please comment below, I would like to hear your thoughts.