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Saleh Sazzad
Saleh Sazzad
Sr. Investment Analyst at Bangladesh Angels | Specialist in Angel Syndicates & Startup Financing | Facilitated $10M+ in Successful Investments
Published Mar 11, 2024
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This book consists of 20 amazing chapters covering various events and investment case studies. Selecting the top ten lessons among them was challenging, given the insights presented by the author. I loved how the author emphasized that being a successful investor doesn't require a stratospheric IQ, unusual business insights, or inside information, what is truly needed is a sound intellectual framework with analytical tools for making decisions and the ability to keep emotions from corroding that framework. It felt like a prescription to have emotional discipline when it comes to investment.
Graham was referred as not just the best investor who ever lived but the greatest practical investment thinker of all time and this book remained as the single best book on investing ever written for the general public. I also stumbled upon the purpose of this book which is to supply in a form suitable for laymen, guidance in the adoption and execution of an investment policy and there were very little mentioned about the technique of analyzing investments, Graham mainly emphasized on investment principles and investors attitudes.
One topic that particularly struck me was the story involving Sir Isaac Newton.
Back in the spring of 1720, Sir Isaac Newton owned shares in the South Sea Company, the hottest stock in England. Sensing that the market was getting out of hand, the great physicist muttered that he “could calculate the motions of the heavenly bodies, but not the madness of the people.” Newton dumped his South Sea shares, pocketing a 100% profit totaling £7,000. But just months later, swept up in the wild enthusiasm of the market, Newton jumped back in at a much higher price—and lost £20,000 (or more than $3 million in today’s money). For the rest of his life, he forbade anyone to speak the words “South Sea” in his presence
Sir Isaac Newton, widely regarded as one of history's most brilliant minds, failed to demonstrate intelligent investing behavior, according to Graham's standards. His inability to resist the influence of market euphoria serves as a cautionary tale. In essence, Graham teaches us that intelligence in investing is more a matter of character than of sheer intellect.
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Talked about enough redundants, Let's now jump into the lessons:
In closing, let's remember that in the journey of investing, it's not about being the smartest, but about mastering the art of emotional discipline and adhering to timeless principles, as outlined by Benjamin Graham.
Happy investing, and may our journey be guided by wisdom and prudence.
Also, I'm currently immersed in 'Venture Capital - The Power Law,' exploring the dynamics of VC space. Stay tuned for my upcoming newsletter where I'll be sharing the top learnings from this amazing read. —subscribe to my newsletter and join me in exploring venture investment.
Capital Chronicles
Capital Chronicles
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