Where does the information come from?
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The source of this information has been gathered from three books. The Intelligent Investor, A Random Walk Down Wall Street and Bogle On Mutual Funds. This analysis tries to bring the knowledge of these time tested giants to people in the crypto space.
Write-off
We do not give any investment advice and are not liable for any sort of loss of capital.
Graham published his first edition 1949, Malkiel 1973 and Bogle 1999. They have been tested time and time again and endorsed by great minds. The historical data presented in them is interpreted as truths.
Theories might have been misunderstood, data misinterpreted. If you discover errors please be in touch. Feedback and comments are always encouraged!
The Intelligent Investor
The Intelligent Investor was written by the late Benjamin Graham and the first edition was released 1949, with subsequent revisions. Warren Buffet, a former student of Graham, entitles it “By far the best book on investing ever written” (see top of cover).
Critique
The only type of critique found focuses on either dry language or outdated methods. This study read the revised edition of 1973, with added comments from 2006 by Jason Zweig. It adds commentary to each chapter and analyses the theory presented through the track of time since the passing of Graham. The ideas presented seem to have held up very well through the decades.
A Random Walk Down Wall Street
A Random Walk Down Wall Street is written by Burton G. Malkiel. Burton is a famous person in the field who combines both academic and business career, including a two time chairman of the economics department of Princeton and as a former director of The Vanguard Group.
Burton is a proponent of the Efficient Market Hypothesis (EMH) and suggests an index fund is an exceptional tool for almost everyone. Written in 1973, the latest revision contains proof of the sound investment principles: a dollar in S&P 500 year 1969 would have outgrown a dollar in the average fund with almost 50% 2014.
Critique
While widely appreciated, there is critique citing the EMH as inaccurate. To recap, EMH states that in a world where everything is known “there are no shortcuts” in the long run and everything is efficiently priced. As such, you should invest in the market (i.e. an index) and not an individual stock.
Critique from followers of the value-based method (The Intelligent Investor) exists. In Appendix 1 of The Intelligent Investor Warren Buffet includes performance of his and a few other investors from the school of Graham who have beaten the market over time. Even so, for the majority of investors Bogels, Malkiels and Grahams advice are the same.
Even if EMH is considered inaccurate, the data supporting his arguments are as solid as can be. That data clearly show the effectivity and efficiency of such a simple strategy as investing in an index.
Bogle On Mutual Funds: New Perspectives For The Intelligent Investor
Bogle on Mutual Funds, is written by John C. Bogle. Whom hold an awesome reputation, might be best known as founder of The Vanguard Group whom now control over $5 trillion in assets.
Bogle on Mutual Funds was written to offer the same perspective on mutual funds as Graham offered his readers on stocks and bonds, he openly admits the importance of Grahams earlier work. The book itself has a foreword by Paul A. Samuelson, Institute Professor Emeritus at Cambridge. It is endorsed by several industry giants, one is Warren Buffet: “This is the definitive book on mutual funds — comprehensive, insightful and — most important — honest. Any investor who owns or is thinking of owning shares in a fund should read this book from cover to cover”.
Written in 1994, endorsed by economic professors and investors alike, it has been read by millions. Up until 2015 it’s theories have been proven to work.
Critique
Searching for negative critique online, none has been found.
