Most so-called investors and advisers focus on getting cash into publicly traded stock and corporate debt securities (where underwriting and investment fees are highest for promoters and allocators). In so doing, the thinking is all about what might be won.
Few do in-depth pre-work to determine how much one can afford to wager on risky bets in the first place. Even fewer have a price discipline to determine what assets are worth before they are bought or sold. This recent Wealthtrack segment is a good recap of timeless principles that are repeatedly overlooked, ending in foreseeable pain.
An interview with leading financial journalist Jason Zweig. Since 2008 Zweig has written the widely read “The Intelligent Investor” column for The Wall Street Journal. That, of course, is the name of the investment classic written by Benjamin Graham, considered to be the father of value investing. Zweig has an intimate knowledge of the thinking of Graham because he edited the last revised edition of The Intelligent Investor with a forward written by Warren Buffett who calls it “by far the best book on investing ever written”. Here is a direct video link.
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