Book Review: A Wealth Of Common Sense – Ben Carlson
Which of the decisions that investors make contribute the most to success or failure? Find out how to improve your investment decisions, create a better and more consistent investment strategy.
Book Summary Notes: A Wealth Of Common Sense – Ben Carlson
- Not every investor or investment strategy is equal. Some investors benefit greatly from cost of scale and it would be nearly impossible for the average person to also benefit from.
- In the beginning knowing what to avoid and not do is almost more important than knowing what to do right. Remember that ‘get rich quick’ is not the aim of the game. Investing with that mindset is far more likely to send you straight into the hole instead.
- Being aware of your own emotions as an investor is both difficult and necessary. Many of us think that our emotions won’t affect us but stats show they do. Become familiar with the common pitfalls that people fall into and learn to manage your emotions around those same issues so you can be more aware of the issues.
- Never forget the risk reward correlation. How much can you really afford to risk? Do you have your other bases like insurance all covered?
- Know your own personality and pick an investment style that follows what you know about yourself. If your more the consistent/grinding type you may prefer index investing and should probably avoid trying your luck with penny stocks.
