So my understandings of value based investing based upon reading the tome over the span of three weeks was largely about the importance of purchasing large common stocks when they are undervalued or have fallen out of favour with the general public. Paramount to this is asking yourself every time before you buy something whether or not you are getting good value for money and whether or not the asset you purchase is safe enough to retain value or has the potential to crash into oblivion.
Another albeit obvious finding that it pointed out was the duality of identity that comes with stock ownership. Simply put, when one becomes an owner of shares, you become a part owner of a business on one hand and also the owner of a (hopefully) appreciating asset. More than not it would seem that most investors tend to focus on the second identity and often forget the first. It just so happened today that I was reminded of this when I received a voting form in the mail today, the first I had ever received, which reaffirmed to me that as much as I hold very little to make much difference in any voting outcomes, it is still a good reminder that in making that purchase, I probably ought to take a stronger interest in the prosperity of the business whilst I still hold the equities.
Although these aren't particularly sophisticated or groundbreaking insights, they make for a solid foundation that I hope I do not forget in the pursuit of this venture.
By 小福
No comments:
Post a Comment