“The essence of investment management is the management of risks, not the management of returns.”
~ Benjamin Graham, The Intelligent Investor
Written by Bryan Lutz, Editor at Dollarcollapse.com:
If you were to remember one message on how to invest it should be this:
Manage risk first.
That’s what’s made Buffett so rich…
Because let’s be honest, overnight “get rich quick” investing schemes are far from real.
With a few exceptions, of course.
When you invest in a Junior Mining company, you shouldn’t expect to receive instant returns.
Even though it true, you can 10x your money in a few weeks to several months with the right investment…
One good press release can attract all the eye balls. Shoot the stock up, 3x to 5x… Thats enough for you to take a healthy profit.
Then there’s an outright sale of a company or shares to a Major looking to add to their vast production portfolio. When they pick up a junior mining company, you can truly 10x or more your investment.
So yes, if you have the right information, you can make a healthy sum of money in gold and silver mining companies.
But Benjamin Graham’s ‘The Intelligent Investor’ takes a different approach.
‘The Intelligent Investor’ is Buffett’s choice for SuperText #4.
And like Buffett…
If you have money, why not make it your first priority to keep it?
That’s how he made all his money.
He’s managed risk to keep his money first, and then slowly gather more.
You can figure out how to do that too.
With the right information, you don’t have to be too “intelligent” either…
Taking your time to read through The Intelligent Investor (not an affiliate link) doesn’t have to be a massive project.
Take your pick of the chapters.
Use it like a reference, even skip to this one to find out the best way to pick safe investments, and discover the heart of value investing.
You simply find stocks that meet the “Margin of Safety” standard(Chapter 20, page 512).
Then consider if you’d like to invest.
If you do, then you’d be looking at an investment horizon of ten to fifteen years.
That’s part of the exchange Buffett’s made several times over.
Make more money, faster with more risk…
Or, make more money, slower with less risk.
It’s up to you…
Both make more money.
Choose one or the other, or a little bit of both.
But if you have the time…
You know what Graham’s student, Buffett says, “no one wants to get rich slow.”
