We all know that in order to be a successful investor, we should
buy low and sell high. In other words, we should pay a low price for
our investment and sell it for a higher price. So why do many of us do
exactly the opposite? Why do we buy high and sell low?
To answer this question, I would like you to join me on a journey.
As you read this book, you will realize some of the major mistakes
we make as investors. You will discover why being liked does
not make you a good investor, why our inability to not act might
stop us from achieving the success we want, and why 88 percent of
Swedish drivers believe they are safer drivers than most.
After we learn to recognize some of our mistakes as investors,
we will go on to learn about the stock market and the psychology
of its participants. You’ll learn the true value of a company and that
a stock is more than a ticker running at the bottom of a TV screen
while an assortment of noises tells you what to do next. You may be
surprised to learn that there isn’t a single company ticker or even an
actual company name mentioned in this book. However, many characteristics of good companies are discussed.
I wrote this book because I believe understanding the fundamentals
of investing is a crucial first step in making the right investment
decisions, which today more than ever is mandatory for any
investor who cares about his or her financial future.
I wrote this book also because I have seen too many people
jump in to commit their hard-earned money without knowing the
basics of investments, making the same mistakes over and over again
and ending up with unsatisfactory results and even frustration about
investing. I want you to know more.