My investing muse - Reading our way into investing success (07Jan2022)

 Learning is a lifelong journey.

Let us read so that we can get better with our investment strategy, mindset and values. Read so that we can keep current with the trends, changes, developments.  Read so that we can improve our odds, learn from the lessons of another - so that we can avoid and/or learn from them accordingly.  I do not think that I am smarter or better than the fund managers, but I still have a good chance of being successful if I work hard to read up, study, listen to interviews and analyze the annual and quarterly reports.  Personally, hard work can be a stronger competitive advantage than being smart.  

If we take time to read up on household items, mobile phones or cars before we purchase, we should do the same for investing.  If I cannot explain the business to my kids, then, I do not know the business well enough.  It will be less risky if we qualify the leads (or tips) provided so that we can improve our "odds", arrive at our own conclusion and understanding of the business.  The gurus are a good starting point of reference - but we need to invest based on our own understanding, knowledge and conviction.  I have high regard for Buffett, Munger, Pabrai, Spier, Dalio but I cannot invest solely based on their 13F filings.  

Our own reading & analysis will give us the confidence to hold or add to our positions should the price fall further.  There are also times when we can fail despite our best efforts.  All these are part of the "school fees" that we pay to be better investors.  I embrace the mentality of "all things in life happen as blessings or lessons", everyone is a step closer to being where we need to be.  If we wish to be successful, some failures cannot be avoided.

The extract above is taken from "the Tao of Charlie Munger" by David Clark.

Some of the books (including audiobooks) that helped me greatly as a retail value investors include:

1.  The Psychology of Money by Morgan Housel

2.  Richer, Wiser, Happier by William Green

3.  One up on the Street by Peter Lynch

4.  Learn to Earn by Peter Lynch

5.  Beating the street by Peter Lynch

6.  The Tao of Charlie Munger by David Clark

7.  Warren Buffett and the Interpretation of Financial Statements by Mary Buffett abd David Clark

As I read, I will highlight the good quotes and make my own notes.  This is the same when I listen to news, interviews or youtube investing videos.

I am in the midst of going through the following:

1.  Psychology of Intelligence Analysis by Richards J. Heuer Jr

2.  The Intelligent Investor by Benjamin Graham

3.  The Education of a value investor by Guy Spier

4.  The Changing World Order by Ray Dalio

One of my aims for 2022 is to derive an intrinsic valuation of the companies using different models and with that, the establishment of a margin of safety.  Currently, I am using a few websites to help me with the intrinsic value but the is much 'disparity' in terms of the valuation.

In 2022, I am planning to get into materials of authors such as Mohnish Pabrai, Nick Sleep (his letters to his shareholders), Berkshire's newsletters, Sir John Templeton, John Bogle and other investors.  I have recently done up a 4 parts series on the websites that I use regularly for my investing and my set-up.  Hope that these can be helpful.

Let us read our way into becoming better persons, better investors.  

All the best for 2022.  虎虎生威，虎年更猛。