Investing Wisdom

 This is second great book on common sense investing after John Bogle's classic "The little book of Common Sense Investing". Here are my reading notes from the book. Generic The investment management industry is obsessed with studying past trends and using them to predict the future. Unfortunately - a good advisor or investor understands that the past has little meaning, and the future cannot be predicted. Asset allocation, as a result, is a sound strategy for all investors. The biggest risk of all is failing to diversify properly. The only function of economic forecasting is to make astrology look respectable – John Kenneth Galbraith. When a broker calls suggesting that the price of a particular stock will rocket, what he’s really telling you is that he is not overly impressed with your intelligence. Otherwise, you would realize that if he actually knew that the price was going to increase, he would not tell it to you or even his own mother. Instead, he would quit his jo...