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I've been re-reading The Intelligent Investor it's the copy with Jason Zweig comments at the end of every chapter.

If the title of this thread is something that's on your mind, I would encourage picking up a copy, the ebook price is $18 or something.

I would summarise the message of the book as:
* There's two types of market participants: speculators and investors. The book isn't for speculators and discourages speculation beyond a small part of your overall net worth.
* There are two types of investors: conservative and aggressive.
* If you're a conservative investor, you should just be as passive as possible and invest in a mix of quality stocks and quality bonds. The mix shouldn't ever be more than 70/30 stocks/bonds or 30/70 stocks/bonds, and realistically given the unknowable nature of the future it should probably just always be 50/50 stocks bonds. When the book was written there was no easy way to buy the index, so there's some steps for identifying the portfolio of stocks a conservative investor should buy, about 30 different stocks with a long history of operations, dividend payments, profit etc. These days easier/cheaper to just buy the index.
* You need quality bonds in your portfolio just as much as you need stocks because the future is unknowable. Bonds will provide a stable return during lower/negative nominal growth periods and stocks hopefully return during higher/positive nominal growth periods.
* If you're an aggressive investor, you should only be investing if you realistically believe you can earn a 5%p.a. alpha over passive alternatives. Most people can't achieve this over the long run, for the reasons described in this thread, and therefore shouldn't really be aggressive investors, but if you want to it goes into detail about some mechanisms to do so. Most of those mechanisms described probably fall somewhat under a "value investing" umbrella, probably easier to just buy some shares in Berkshire.

Moral of the story, just buy 25% VAS/25% VGS/25% IGB/25% ILB and go do something more rewarding with your time.

<blockquote data-quote="InsvestoBoy" data-source="post: 1221000" data-attributes="member: 69309">I&#039;ve been re-reading The Intelligent Investor it&#039;s the copy with Jason Zweig comments at the end of every chapter.If the title of this thread is something that&#039;s on your mind, I would encourage picking up a copy, the ebook price is $18 or something.I would summarise the message of the book as:* There&#039;s two types of market participants: speculators and investors. The book isn&#039;t for speculators and discourages speculation beyond a small part of your overall net worth.* There are two types of investors: conservative and aggressive.* If you&#039;re a conservative investor, you should just be as passive as possible and invest in a mix of quality stocks and quality bonds. The mix shouldn&#039;t ever be more than 70/30 stocks/bonds or 30/70 stocks/bonds, and realistically given the unknowable nature of the future it should probably just always be 50/50 stocks bonds. When the book was written there was no easy way to buy the index, so there&#039;s some steps for identifying the portfolio of stocks a conservative investor should buy, about 30 different stocks with a long history of operations, dividend payments, profit etc. These days easier/cheaper to just buy the index.* You need quality bonds in your portfolio just as much as you need stocks because the future is unknowable. Bonds will provide a stable return during lower/negative nominal growth periods and stocks hopefully return during higher/positive nominal growth periods.* If you&#039;re an aggressive investor, you should only be investing if you realistically believe you can earn a 5%p.a. alpha over passive alternatives. Most people can&#039;t achieve this over the long run, for the reasons described in this thread, and therefore shouldn&#039;t really be aggressive investors, but if you want to it goes into detail about some mechanisms to do so. Most of those mechanisms described probably fall somewhat under a &quot;value investing&quot; umbrella, probably easier to just buy some shares in Berkshire.Moral of the story, just buy 25% VAS/25% VGS/25% IGB/25% ILB and go do something more rewarding with your time.</blockquote>

[QUOTE="InsvestoBoy, post: 1221000, member: 69309"] I've been re-reading The Intelligent Investor it's the copy with Jason Zweig comments at the end of every chapter. If the title of this thread is something that's on your mind, I would encourage picking up a copy, the ebook price is $18 or something. I would summarise the message of the book as: * There's two types of market participants: speculators and investors. The book isn't for speculators and discourages speculation beyond a small part of your overall net worth. * There are two types of investors: conservative and aggressive. * If you're a conservative investor, you should just be as passive as possible and invest in a mix of quality stocks and quality bonds. The mix shouldn't ever be more than 70/30 stocks/bonds or 30/70 stocks/bonds, and realistically given the unknowable nature of the future it should probably just always be 50/50 stocks bonds. When the book was written there was no easy way to buy the index, so there's some steps for identifying the portfolio of stocks a conservative investor should buy, about 30 different stocks with a long history of operations, dividend payments, profit etc. These days easier/cheaper to just buy the index. * You need quality bonds in your portfolio just as much as you need stocks because the future is unknowable. Bonds will provide a stable return during lower/negative nominal growth periods and stocks hopefully return during higher/positive nominal growth periods. * If you're an aggressive investor, you should only be investing if you realistically believe you can earn a 5%p.a. alpha over passive alternatives. Most people can't achieve this over the long run, for the reasons described in this thread, and therefore shouldn't really be aggressive investors, but if you want to it goes into detail about some mechanisms to do so. Most of those mechanisms described probably fall somewhat under a "value investing" umbrella, probably easier to just buy some shares in Berkshire. Moral of the story, just buy 25% VAS/25% VGS/25% IGB/25% ILB and go do something more rewarding with your time. [/QUOTE]

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