Reddit reviews The Four Pillars of Investing: Lessons for Building a Winning Portfolio
We found 7 Reddit comments about The Four Pillars of Investing: Lessons for Building a Winning Portfolio. Here are the top ones, ranked by their Reddit score.
Used Book in Good Condition
I havent read "Candlestick Charting Explained", but as far as candlestick charting goes... Steve Nison's "Japanese Candlestick Charting Techniques" is considered the bible. Candlesticks is really a discussion on price action... I think candlesticks can get you into a lot of trouble.
I think that Edwards and Magee "Technical Analysis of Stock trends" is looked upon more more favorably than Murphy for an overview of TA and methods. Though, IMO they both leave a lot to be desired. Really the best way to learn technical analysis is to find someone who uses these methods to execute trades and can explain the reasoning and risk-reward metrics behind their trades. If this interests you, I recommend Peter Brandt https://www.peterlbrandt.com/ He has a track record and has even written a book.
If i were to recommend a couple books
For true beginners in investing and don't want to spend time doing the "work": I recommend "4 pillars of investing" it discusses asset allocation and investing in a broad sense 4 Pillars
For beginners that want an intro to stocks: Greenblatt's "Little Book that beats the market" is the best book that I know of for an intro to stock investing. And it can be read in one sitting. Little Book
If you want to be a more active trader/investor in the market then I recommend:
Oneil's [How to make money in stocks] (https://www.amazon.com/dp/B00916ARYS/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1)
Minervini's [Trade like a stock market wizard]
(https://www.amazon.com/dp/B00C1NKPUE/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1)
Lynch's [One Up On Wall Street]
(https://www.amazon.com/One-Up-Wall-Street-Already/dp/0743200403/ref=asap_bc?ie=UTF8)
Cramer's [Real Money]
(https://www.amazon.com/Jim-Cramers-Real-Money-Investing/dp/0743224906/ref=pd_sim_14_1?_encoding=UTF8&pd_rd_i=0743224906&pd_rd_r=156ZB32KPJ8XN7V9K1HQ&pd_rd_w=Anlpz&pd_rd_wg=aZn7O&psc=1&refRID=156ZB32KPJ8XN7V9K1HQ)
Town's [Rule 1] (https://www.amazon.com/Rule-Strategy-Getting-Rich-Minutes-ebook/dp/B000GCFCQE/ref=sr_1_cc_1?s=aps&ie=UTF8&qid=1479913887&sr=1-1-catcorr&keywords=rule+no+1+investing)
These picks are all different styles and have something different to offer. A lot of the advice you are going to get is going to be bent towards value investing, diversification, and asset allocation... This is good advice, and will make you a smarter investor but not a richer one.
If you are interested in day trading or swing trading then you will probably need to find some personalized training and I wish you the best because there is a ton of crap out there... I dont think that many people are willing to put in the time and effort to be sucessful at this and so I don't recommend it.
No you have almost no diversity. You are 100% USA, strong growth tilt. 100% cap weighting for stock selection within size categories.
You obviously like growth. Being a bit old fashioned here I think you would love PRGSX (T Rowe Global Stock Fund). Reading the fund literature would help a lot and ideologically they are in tune with where you want to be. That fund would keep you out of trouble until you know what you are doing and frankly if you never learned that's a great fund to sit in for life. And I say that as a value guy who would want to vomit in many of the stocks they are picking.
If you do have a commitment to low cost passive cap weighted. Just do Vanguard Total Stock for now unless the portfolio is big. Again I don't like cap weighting (for lurkers start of a series on the topic: https://www.reddit.com/r/IncomeInvesting/comments/czqw1l/adversus_cap_weighting_introduction_part_1/) but you need international.
In terms of how you can improve, read at least one book portfolio design before you start designing a portfolio. https://www.amazon.com/Four-Pillars-Investing-Building-Portfolio/dp/1932378014 is my recommendation to start.
Simplest version is looking at the fees on your mutual fund options. Stuff like vanguard or fidelity mutual funds will be the cheapest on fees by 10x or more (vanguard like .06 where others may be .6-2.5%/yr). If you make 5% a year and fees are 2.5% vs making 4.5% a year and fees are .06, that's where people fail at math your 401k provider and employer don't tell you in the first place. You can still diversify into aggressive/international/mid cap/small cap/etc. When you click on changing your investments, some 401ks let you sort investments by fees. You may also see it looking at the investment disclosure doc.
It'll say something like example:
T Row Price fund:
Fees and Expenses
Total Annual Operating Expense 0.43%
Net Expense Ratio 0.43%
Versus:
Vanguard:
Management Fees 0.04
12b-1 Distribution Fee None
Other Expenses 0.00%
Total Annual Fund Operating Expenses 0.04%
Versus: Blackrock:
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements
0.93% 1.64% 0.61% 1.24%
Quite a big difference just there alone. I don't even understand how blackrock splits who is in what category but .6-1.6 range no matter where you fall is a hell of a lot more than .04 Over a 10+ year period imagine how much that would impact your growth and how much the funds manager is making instead.
There is a book called the four pillars of investing, I'd start there, it's a summary of everything you need to know and counter to stuff like mad money and weird investment shit where people sell on making millions and prey on people's greed. https://www.amazon.com/Four-Pillars-Investing-Building-Portfolio/dp/1932378014. Feel free to *dm/pm and I'll help wherever I can, too.
Serious recommendation (no snark here). It's a great book on how to build a portfolio. Can be a slow read in some areas but very helpful.
Four Pillars of Investing
The Four Pillars of Investing
Sounds like a great father, he is working to build a desirable habit in you real early. But really your investing will start once you have regular income.
> Any sources to learn about such stuff?
Too many sources to mention. The book, The Intelligent Investor by Benjamin Graham continues to be a gold standard. But it is pretty wordy and difficult for the first timer. Rich Dad, Poor Dad is exciting to read but very shallow and even misleading. Most of these books use the American market in perspective.
The Four Pillars of Investing. Great book for beginners!
Read/Listen to this, https://www.amazon.com/Four-Pillars-Investing-Building-Portfolio/dp/1932378014 . Follows what some folks here are saying, and is generally the Bible on investing for the average person.