Reddit Reddit reviews Warren Buffett's Ground Rules: Words of Wisdom from the Partnership Letters of the World's Greatest Investor

We found 1 Reddit comments about Warren Buffett's Ground Rules: Words of Wisdom from the Partnership Letters of the World's Greatest Investor. Here are the top ones, ranked by their Reddit score.

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Warren Buffett's Ground Rules: Words of Wisdom from the Partnership Letters of the World's Greatest Investor
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1 Reddit comment about Warren Buffett's Ground Rules: Words of Wisdom from the Partnership Letters of the World's Greatest Investor:

u/cbus20122 ยท 3 pointsr/investing

If you want to be an active investor in any way...

  • I'm a really big fan ofWarren Buffet's Ground rules. Somewhat biased since it was the first book I read, but it's a great analysis of Buffet's evolution as an investor. Buffet has never written a book himself, but he HAS written a lot of letters through his hedge fund and then later Berkshire Hathaway. This book basically breaks down all of those letters, and provides commentary on his style and how he has invested over the years. IMO, it's a much better read for value investing these days than something like Graham's Security Analysis, and even goes over some items of how value investing has changed, what is different now than back in Graham's days, etc. I do a lot different from this book now, but I think it laid a great foundation for me.
  • I haven't read it myself, but I've heard One Up on Wall St. is a generally good read.

    Beyond these, I would 100% say, get some practice buying stocks / funds. Open a Robinhood account with a very small amount of $. Buy some individual stocks and set rules about when you can or can't sell them. At the end of the sell or hold period, evaluate what went wrong or right. Learn to understand if there was an error in your process / analysis, or if it's just the nature of the market as a whole. These things will never be straightforward, but I know I personally learned a lot when I started as I tended to get caught investing in a lot of value traps. Alternative to Robinhood, you can use Investopedia, although it's probably better to learn when you actually have some skin in the game so you can understand aversion to loss.

    If you don't care to be an active investor...

    Just buy an index fund. You can read stuff like Boglehead's guide to investing, a Random Walk on Wall St, or any other index fund bibles, but the main conclusion to all of these books is that you are going to suck at beating the market, and you should just buy index funds. So if you don't care to try to beat the market, you can just skip most of the reading, find a passive portfolio (3 fund, all-weather, or just buying SPY since you're young) and just build up a base in a passive way and ignore returns until you're over 50 years old.