Investment Tales: Debunking the Myths of Win-Win Strategies. Aswath damodaran
There are hundreds of strategies for trading on the stock exchange, some are more popular, some are less popular.
A separate category are the so-called win-win strategies, which are considered the least risky and guarantee profit.
But in fact, not all win-win strategies live up to their name; a book written by one of the professional investors will help debunk most of the tales.
In it you will find a description of thirteen popular strategies and an explanation of the reasons why these strategies do not always give a guaranteed result.
It should be noted that the main topic of the book is the stock market, and it is investments in securities that the main attention is paid to.
- High dividend stocks – are stocks that pay high dividends really a good investment?
- Undervalued stocks - buying stocks with a low price and high income. Calculation of profitability and determination of the quality of income received.
- Buying below book value - why undervalued securities are not always a guarantee of growth.
- Investments with stable income - are securities that generate constant income always a guarantee of receiving it?
- Buying good companies - everyone has heard that by buying shares of companies whose products are trustworthy, you are guaranteed to win, is this really true?
- Growth securities - assessment of prospects, rate of price growth, strategy for searching for shares of rapidly growing companies.
- The worst is over – buying after drops, the influence of information on the price, what playing against the crowd can lead to.
- A profitable investment in new enterprises - how profitable it is to buy companies that have just entered the market.
- Merger - is it generally believed that mergers of companies always cause their securities to rise, myth or reality?
- Profit without risk - an arbitrage strategy as a generally recognized risk-free option for making money on the stock exchange.
- Inertia in investing - the market is changing, but the majority continues to invest in assets that are no longer promising.
- Should you always trust the advice of experts - insider information, professional analysts and various financial advisors.
- Waiting is always a guarantee of profit; it is generally accepted that in the long term any security will bring income.
If your goal is the stock market, and you want not to speculate within the day, but to start investing, this book will be a real find for you.