A laboratory for changing revenue patterns. Norma. All the money in the world

Developing changing revenue patterns, defining monetary norms aimed at generating positive cash flow.

• The basics of smart investing in Benjamin Graham’s book The Intelligent Investor. The Complete Guide to Value Investing 
• The secrets of financial well-being in Lee Soyoung and Hong Cheung’s book, Let Yourself Be Rich
• Analysing the economy and stock markets in D. Soros’ book “The Alchemy of Finance”

The basics of smart investing in Benjamin Graham’s book The Intelligent Investor. The Complete Guide to Value Investing”.

Benjamin Graham is a famous American economist and professional investor.

Benjamin Graham’s real last name is Grossbaum. The future “father of value investing” and a legendary economist was born May 8, 1894 in London, in a Jewish family with many children.

Benjamin studied diligently, spoke six languages and had a phenomenal memory. Graham’s hard work earned him a scholarship to Columbia University, where he graduated with a bachelor’s degree in 1914. While still a student he was invited to work in three departments at once: Philology, Philosophy and Mathematics, but Benjamin preferred a job in a Wall Street brokerage house.

In 1937 Graham published the book “Analysis of Company Financial Statements”, and in 1949 he published “The Intelligent Investor. The Complete Guide to Value Investing” was published in 1949.

According to Graham, “the prudent investor is a realist who sells stocks to optimists and buys from pessimists”.

The author states: “A stock can be definitely called ‘profitable’ if its aggregate price does not exceed the value of net working capital less all liabilities….Investors buying shares of, say, utility companies at their net asset value, regardless of stock market behavior, remain co-owners of a stable growing business…”

Б. Graham advises: “Never buy a stock immediately after a significant rise in its value and never sell it immediately after a significant fall.”

The author notes that “investments are operations, the purpose of which is to carefully analyze the situation, preserve the funds invested and obtain an acceptable profit. Transactions that do not meet these requirements are speculation”.

Also of interest is Graham’s following advice: “Refuse to obey Mr. Market, and he will become your servant”.

The author argues that “it is best to concentrate on stocks selling at a price close to book value (namely not more than a third above it)”.

Б. Graham emphasises: “A prudent investor is an investor who is patient, disciplined and always willing to learn. It is also an investor who is able to control his or her emotions and think about the future.

We wish you a lot of new and useful information from this book!

The secrets of financial well-being in Lee Soyoung and Hong Chewong’s book Let Yourself Be Rich

To be rich without sacrificing the present for the future is the lesson of Lee Soyoung and Hong Chuyeong’s book. Its author, a journalist from Seoul, masters the “practice of having” with the advice of Korean expert Soyoung Lee. She explains that saving all your life in the hope of a prosperous old age is pointless. Wealth comes to those who take a special approach to shopping, financial investment, career development and other wealth-generating factors. According to Soyun Lee, to move towards increasing wealth you need to:

Evaluate what you have properly;
Manage your money-related emotions;
Seek out and find a “power point” that will provide financial leverage;
Change your focus (this will allow you to see new sources of income);
to be free from the “cage” of rigid views and opinions.

In this book we find interesting thoughts on financial behaviour: “… If you listen to your body’s desires, you will know the limits of your appetites. You won’t overeat, and you’ll know what type of eating you’re inclined to do. Soon you will be a lot healthier. The same principle applies to shopping. By observing your desires, you naturally distance yourself from unnecessary spending. You need to go with the flow, you don’t need to paddle.

Lee Soyun states, “Life is a journey. We try to put together multiple selves to become ourselves. When this happens, we become happy. Possession is the shortest way to find ourselves.”

According to her, “Possession is about understanding what you have when you spend money.”

It goes on to read: “You must train possession every time you spend money. Dig into your feelings and start to feel positive little by little… Possession helps to change your perspective. Shift the focus from what we don’t have to what we do have.”

According to the expert, “anyone can get rich. It’s exactly the same situation with love. Everyone can be loved”.

From the book we learn that “the effect of the practice of possession is manifested in a fortnight in the best of circumstances, and at the latest in three months.

May this book help you achieve financial prosperity!

Analysing the economy and stock markets in D. Soros’ book “The Alchemy of Finance”

In his book “The Alchemy of Finance” the famous financier George Soros offers the reader his own philosophy, according to which not only players influence the market, but also the market influences the players. The writer calls this process reflexive interaction. The work analyses the socio-political events of 1985-1986.

“Introduction” begins: “In a sense, this book is my life’s work. It deals with many issues of enduring interest to me and combines two main directions of my intellectual development: one is abstract and the other is practical…”.

D. Soros goes on to describe his approach to investing: “I developed my own particular approach to investment, which was at odds with conventional wisdom. The conventional wisdom is that the market is always right – market prices tend to correctly compensate for future changes, even when it is unclear what those changes will be. I started with the opposite view. I believe that market prices are always wrong in the sense that they reflect a preference-based view of the future. But the distortion works both ways: not only do market participants act on the basis of their preferences, but also their preferences influence the course of events. This may give the impression that markets correctly anticipate future changes, but in fact it is not expectations that respond to the future course of events, but future events are shaped by those expectations. Participants’ perceptions by their very nature contain error, and there is a two-way relationship – the relationship between erroneous perceptions and the actual course of events – that results in a lack of correspondence between the two. I call this two-way relationship reflexivity…”

The author writes the following about reflexivity: “Considering reflexivity as a periodically occurring phenomenon, rather than a universal condition, provides a fertile ground for research…”

The financier notes that the process of making an investment decision is similar to making a scientific hypothesis: “…the investment decision process is similar to formulating a scientific hypothesis and submitting it to a practical test. The main difference here is that the hypothesis on which investment decisions are based is intended to generate returns, not to establish a universally correct pattern. Both involve considerable risk, and in both cases success brings a corresponding reward – material in the one case, scientific in the other. Adhering to this view, one can regard financial markets as a laboratory for testing hypotheses, although not strictly scientific.”

Д. Soros had “a certain advantage over other investors” because he had an idea of how financial markets function.

The author writes the following about his success: “…I was attuned to the reflexive processes of financial markets, and my major successes arose from taking advantage of the opportunities they provided.”

In the book “The Alchemy of Finance” there is an interesting statement by D. Soros, which certainly makes one think: “The truth is that successful investment activity is a kind of alchemy”.