The Battle for Investment Survival
I read the book of the same title some months back. It was written in 1930s by Gerald Loeb.
As you would know, languages evolve over time. Even within a short period of 70 years, I feel the style of English used in the book is slightly different from the later titles I've read. But it could be due to the writing style of the author too.
I especially like the concept of "putting all your eggs in one basket and watching that (damn) basket carefully". Very different from the diversification style espoused by the masses.
Gerald is definitely not a fan of the buy and hold strategy, probably because he has seen through some serious and prolonged bear markets. Or maybe because of his stockbroker background. This is not to say that buying and holding is not a sound strategy. It works, but only in an upward trending environment. Or you bought your stocks real low (but then you wouldn't have sold it near the top since you bought and decided to hold for the long term).
Inflation is also given much focus in the book. Inflation has been largely ignored for much of the past decade, so reading the book gives an idea of how to tackle such condition (mostly through equities, or so says Gerald). The idea is that we are constantly in the battle to maintain and increase the value of our money.
Low quality investment products are being launched every now and then. Have you fallen victim to any of them yet? My random observation is that such products inevitably have the following characteristics:
I know I did. I recently terminated a growth plan which promises an annual growth rate of 4% and banked the proceeds in another vehicle (where the returns are uncertain but at least it has a fighting chance against inflation).
Having said that, I think it's time to re-read the book. I hope to find this book at the Times The Bookstore sale at a good price.
As you would know, languages evolve over time. Even within a short period of 70 years, I feel the style of English used in the book is slightly different from the later titles I've read. But it could be due to the writing style of the author too.
I especially like the concept of "putting all your eggs in one basket and watching that (damn) basket carefully". Very different from the diversification style espoused by the masses.
Gerald is definitely not a fan of the buy and hold strategy, probably because he has seen through some serious and prolonged bear markets. Or maybe because of his stockbroker background. This is not to say that buying and holding is not a sound strategy. It works, but only in an upward trending environment. Or you bought your stocks real low (but then you wouldn't have sold it near the top since you bought and decided to hold for the long term).
Inflation is also given much focus in the book. Inflation has been largely ignored for much of the past decade, so reading the book gives an idea of how to tackle such condition (mostly through equities, or so says Gerald). The idea is that we are constantly in the battle to maintain and increase the value of our money.
Low quality investment products are being launched every now and then. Have you fallen victim to any of them yet? My random observation is that such products inevitably have the following characteristics:
- "principle guaranteed" with a lock-in period.
- promises a not-so-stellar performance.
- marketed by banks.
I know I did. I recently terminated a growth plan which promises an annual growth rate of 4% and banked the proceeds in another vehicle (where the returns are uncertain but at least it has a fighting chance against inflation).
Having said that, I think it's time to re-read the book. I hope to find this book at the Times The Bookstore sale at a good price.
Labels: Leisure
posted by thelonetraveller at
3:38 pm
0 Comments:
Post a Comment
<< Home