에드워드 도서관(Edward Library)
Stocks for the Long Run 5/E(Jeremy James Siegel) 본문
Stocks for the Long Run 5/E(Jeremy James Siegel)
Edward.L 2024. 1. 16. 13:59I think it is a very good book, and it was a book that helped me learn various stock terms and how to make long-term investments.
It is worth reading if you have some experience with investing.
It seems like a must-have book for anyone who is tired of short-term investing or needs to start investing.
Investing in stocks for the long term is something that many successful investors such as Warren Buffett and Peter Lynch talk about, and the reasons why you should invest for the long term are explained in detail.
I would like to describe what I personally find important.
(I always transform any book review into a self-help book, so please read with that in mind.)
1. Humans must look to the future.
Who will produce the goods and services that retirees will consume?
Who will buy assets for retirees to sell?
Now we know that the answer is workers and investors in emerging countries.
mobile e-book: 194p
In my opinion, the indicator of a developed country is if many of the employees at convenience stores, restaurants, etc. are not Korean citizens.
This is because labor costs in developed countries are very expensive.
Even looking at Japan, the next country, I rarely see Japanese people in convenience stores.
However, when you go to countries like Vietnam and Thailand, most of the work is done by their own citizens.
Naturally, the unit cost of simple service jobs is low, and the unit cost of high-level jobs is high.
Domestic citizens will be flocked to occupations with higher unit costs, and many workers from emerging countries will come to occupations with lower unit costs.
Dreaming of the Korean dream.
Just like we did before when we dreamed of the American Dream.
In Korea, the number of foreigners in simple service jobs continues to increase.
I believe that these results are changing more rapidly because the country's citizens are highly skilled workers.
However, with this development, workers in emerging countries may one day become rich and influence the lives of their citizens.
Just like foreigners buying real estate in Chinatown or Korea today.
This means that more and more people receiving monthly rent are foreigners.
Or it could be that the owner of the restaurant you always go to is a foreigner.
We must always prepare for this and think about where to invest.
2. Stocks are an investment in the future.
Like other financial products, stocks are not a good inflation hedge in the short term.
But over the long term, stocks are an excellent inflation hedge.
mobile e-book: 534p
To put it simply, I think that stocks represent a specific company.
For example, just as Google now makes money by providing services such as web search, YouTube, Android, and AI to people around the world.
So Google's stock price continues to rise, and Google uses its profits to develop more services and grow.
I think this is the same for all stocks.
We are a community that must grow together.
And a lot of investment must be made for future generations.
Humans have a short time to live only looking at their own lives.
As his own family grows, the depth of his thoughts will grow.
The time to earn income is also very short, about 30 years, as shown in the photo attached below.
Only by investing in stocks for the long term can you prepare for the future.
Of course, it doesn't matter if it's not a stock.
If you are well prepared for the future, you must prepare yourself and your children so that there will be no hardships later.
I bought stocks for my 19-month-old child.
This seed was planted so that it could become a large forest.
I hope that the child does not end up living an ordinary life like the one in the photo above, and that he leaves more forests to his children when they grow up.
3. What are your investment principles?
To be successful in long-term investing, you must first establish discipline and then motivate yourself to stay the course.
This is called a ‘pre-restraint device’.
The idea is to establish asset allocation principles and then stick to these principles.
mobile e-book: 820p
It is very difficult to succeed in long-term investing.
For example, waiting for a 10,000 won stock to become 20,000 won requires great discipline.
This is the part where you have to wait until your stock gets red +20%, +30%, +40%...+100%.
Can the average person wait until it gets to 100%?
Just comparing banks, if you have a 10% deposit, everyone will flock to you, but you need to have the discipline to wait for a 20% profit right in front of you.
There is a marshmallow experiment that was popular back in the day.
This was an experiment where a child was given a marshmallow and if he held on for 15 minutes, he was given another marshmallow.
You can eat one marshmallow right now, but if you wait 15 minutes, you can get two marshmallows, which shows the person's self-control.
The same applies to adults as well as children, and is similar to long-term investment.
We believe that in order to succeed in investing in stocks, you must have self-suggestion and a clear goal.
If you try to sell or buy then, nothing will change.
You must strengthen yourself with clear goals and self-suggestions that you will not regret.
For example, I can declare that I will make a 50% profit on a stock and never sell it until I make it.
Of course, you need to research and analyze the stock, and you also need to have discipline.
So investing is difficult.
Before investing, you must have your own investment goals and objectives.
Otherwise, your profits will come and go like a reed.
4. What kind of investor am I?
To be successful at investing, you first and foremost need to understand yourself on a much deeper level.
As the Wall Street saying goes, “The stock market is a place where it costs a lot of money to figure out who you are.”
mobile e-book: 832p
Just as you need to know yourself in investing, I think it is very important to know yourself in life.
Why do I need money?
How much money do you need?
How do I earn it?
How should I use it?
How do you live?
How are you investing?
How are you raising money?
What is my goal?
Etc. I think it is the basics of investing to know how you currently earn, spend, invest, and save.
If you are a short-term/long-term investor, what are your criteria?
Are you always giving feedback?
You have to keep biting your tail and asking yourself.
What kind of investor am I?
So in the end, you have to find your own answer/investment method.
Even if you know Warren Buffett's portfolio, you can make profits because Buffett has his own standards.
Even if you look at a lot of other people's portfolios and follow them, if you don't have your own experience, you won't be able to make a profit because you won't know when to buy or when to sell.
So, you either enter the reading room or get fooled by the gimmicks of the con artists.
In order not to do that, you must know yourself.
◎Korean Review
주식에 장기투자하라(저자 : 제러미 시겔, 출판사 : 이레미디어)
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minilds.tistory.com
- 저자
- Siegel Jeremy
- 출판
- McGraw-Hill Companies
- 출판일
- 2022.09.27
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