The Intelligent Investor - 03
The death of the bull market is not the bad news
everyone believes it to be. Thanks to the decline in stock prices, now
is a considerably safer—and saner更明智—time to be building wealth.
Speculation is always fascinating, and it can be a lot of fun while
you are ahead of the game. If you want to try your luck at it, put aside
a portion——the smaller the better—of your capital in a separate
fund for this purpose.
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Never add more money to this account just because the
market has gone up and profits are rolling in.
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Never mingle混合 your speculative and investment operations
in the same account,nor in any part of your thinking.
We recommended that the investor divide his holdings between
high-grade bonds and leading common stocks; that the proportion
held in bonds be never less than 25% or more than 75%, with the
converse颠倒的 being necessarily true for the common-stock component;
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As an alternative policy he might choose to reduce his common-stock
component to 25% “if he felt the market was dangerously high,”
and conversely to advance提高 it toward the maximum of 75% “if he
felt that a decline in stock prices was making them increasingly
attractive.”
The enterprising有事业心/胆量的 investor under today’s conditions still has
various possibilities of achieving better than average results.
All of human unhappiness comes from one single thing: not
knowing how to remain at rest休息/静止 in a room.
★★★
An investment operation is one which, upon thorough analysis,
promises safety of principal and an adequate适当的 return.
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•you must thoroughly analyze a company, and the soundness of its
underlying businesses, before you buy its stock;
•you must deliberately protect yourself against serious losses;
•★★★you must aspire to “adequate★适当的,” not extraordinary极致的,
performance.
An investor calculates what a stock is worth, based on the value of
its businesses. A speculator gambles that a stock will go up in price
because somebody else will pay even more for it.
Speculating in the market can be exciting or even rewarding.
But it’s the worst imaginable way to build your wealth.
The intelligent investor has no interest in being temporarily
right. To reach your long-term financial goals,
you must be sustainably持续的 and reliably可靠地 right.
The public felt more knowledgeable about the markets
than ever before. Unfortunately, while people were drowning
in data,knowledge was nowhere to be found.
•You must never delude欺骗 yourself into thinking that you’re investing
when you’re speculating.
•Speculating becomes mortally致命地 dangerous the moment you begin
to take it seriously.
•You must put strict limits on the amount you are willing to wager下赌注.
The intelligent investor designates a tiny portion of her total
portfolio as a “mad money” account.
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For most of us, 10% of our overall wealth is
the maximum permissible可允许的 amount to put at speculative risk.
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Never mingle混合 the money in your speculative account with what’s in your
investment accounts; never allow your speculative thinking to spill使溢出
over into your investing activities; and never put more than 10% of
your assets into your mad money account, no matter what happens.
★★★
For better or worse, the gambling instinct is part of human nature—
so it’s futile for most people even to try suppressing it.
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But you must confine限制 and restrain约束/克制 it. That’s the
single best way to make sure you will never fool yourself into
confusing speculation with investment.
