Nowadays, there are more and more people investing in financial management, and new investors and citizens are constantly pouring into the financial trading market every day. But investing is not a simple matter. In particular, the volatility of stocks is a big test for investors, especially those who are new to the market and have weak psychological endurance.

Therefore, it is inevitable to keep learning if you want to do the investment well. In the process of learning, reading is essential.

Peter Lynch is the best Public Offering of Fund manager in the 2th century, and can be compared with Buffett as an investment master. His classic works are one of the required books for investment introduction.

Peter Lynch teaches you how to manage your finances is aimed at high school students and investors who are just beginning to invest, but the number of times investors at other levels will certainly gain something, because as Peter Lynch said, the root of successful investment lies in basic rationality and common sense, not profound principles.

This book is mainly divided into four chapters, from the past lives of American stock market, the basic principle of stock market investment, the life cycle of listed companies, the secret of success of listed companies, and the development history of American stock market and American capital written in vivid language, so as to give investors enlightenment.

The following are some experiences I shared after reading this book.

The sooner the awareness of investment is established, the better. If you don't realize the importance of investment until after middle age, you will miss the precious opportunity of investment, because the wealth before this could have been preserved and increased faster because of investment.

I have mentioned financial investment to many people around me, but their response is that there is no money, and financial management is the business of the rich. But in fact, these people who say they have no money often travel around or go shopping in a year. This is the common fault of many people in modern times. Even if they have a surplus, they will not invest.

what if there is no money for investment? That is to save. As Peter Lynch said, whether it is $1 a month or $1 a month, try your best to save money and invest regularly. If you can save and invest as early as possible, one day you will be able to live on money alone. But if you can't get into the habit of saving and investing regularly, all this is impossible.

since talking about investment, some people may ask, is it an investment if I put money in the bank? The answer is, of course.

bank deposit is a kind of investment. Its advantage is that it can pay interest and recover the principal in a relatively short time. But the disadvantage is the low interest rate. Sometimes the interest earned from savings accounts can't outrun the inflation rate.

saving is a good choice when you need to withdraw cash for payment at any time or temporarily deposit money in the bank until it accumulates to a certain extent before investing elsewhere. But in the long run, saving means little.

In addition to bank savings, this book also introduces five investment categories: collectible investment, real estate investment, bond investment, stock investment and fund investment.

investment in collectibles. In addition to being proficient in the items collected, you should also be good at their market value. For example, the stamp collecting market was booming in the 199s. To invest in stamps, we need to have a certain knowledge of the stamp itself (such as distinguishing authenticity) and a certain understanding of the stamp market. Only in this way can we effectively invest in stamps.

real estate investment. This is not for you to speculate in real estate, but for modern people, the house is just needed. Secondly, you can live while waiting for its appreciation. Of course, some people will say, forget about real estate investment. Now that the house price is so high, it is good to buy a suite for life. That's true, but isn't it an investment to buy a suite for life? What's more, investment is a lifetime thing, isn't it?

bond investment. In many people's minds, bonds are varieties with lower risk than stocks. Once held, there is no risk. However, this concept is wrong. Holding bonds is also risky. In this book, Peter Lynch clearly points out three major risks of bonds:

(1) If you sell bonds before the maturity date, you may not be able to recover the principal in full, because bonds will rise and fall in disorder every day. If you buy high and sell low, you will naturally suffer losses.

(2) When the bond issuer goes bankrupt, the principal cannot be repaid. Especially bought junk bonds.

(3) The biggest risk is that the profit is small, and it is difficult to resist inflation in the long run.

Stock investment, which Peter Lynch thinks is the best investment besides house. Speaking of stocks, many people will say that investing in stocks is like gambling, and the stock market is a casino. It seems that many people in the United States think so, and Peter Lynch's best response to this is: If the stock market is a casino, then why is it still so popular and the return is still so high for so many years?

when people keep losing money in the stock market, it is not the fault of the stock market. The value of stocks generally rises with time. 99% of the cases of losing money are because investors can't make investment plans, they buy at high prices, and they often sell at low prices because they are impatient or too scared when adjusting stocks. Their essence is "buy high and sell low".

fund investment is the most suitable investment for those who want to invest in stocks but don't know how to analyze them. At the same time, it is also suitable for people who want to participate in stock investment and think that the stock is too expensive (for example, some people like Maotai, but the price of Maotai shares is too high to buy 1 shares in one hand). Let a professional fund manager manage the investment, and at the same time, you can invest in many stocks, which is much lower than the risk of buying only one.

Since the beginning of this spring, the market of Big A has been fluctuating and adjusting constantly. Many investors and citizens who entered the market last year and this year began to panic. For example, not long ago, I had a friend who had held the fund for almost 2 years. After being tossed about by the market in the spring, there was little income left. Finally, he really couldn't bear to redeem the fund he had held. I can only respond with a sigh after knowing this.

For investors who have not studied systematically and like chasing the wind, one of the biggest mistakes is to fight in stocks and funds in the hope of avoiding adjustment. There is another mistake, that is, holding a large sum of money in hand, delaying admission, but expecting the next adjustment to come and pick up bargains. While trying to avoid the bear market by timing, people often miss the opportunity to dance with the bull market.

So the most important thing in investment is the investor's mentality. A long-term bear market is a great test of everyone's patience, and it is enough to make the most experienced investors anxious. Of course, patience is a virtue, but if you hold stocks that are no longer in their prime, your patience may not eventually be rewarded.

In addition to patience, the investment mentality requires confidence and courage in terms of my personal understanding and current practical experience. Confidence is not only for the company it holds, but also for the whole big market environment. Courage is just like Peter Lynch's helpful reminder to investors in his book: Be as keen and bold as a police dog to seize the opportunity unless the dangerous facts are firmly in front of you.

as I mentioned earlier, last year and this year, many new investors and citizens poured in, especially the latter. The fund is hot, which makes many fund managers suddenly become hot online search figures. For example, many people have been buying the fund of E Fund in Zhang Kun, and even organized an Aikun support club, which made Brother Kun suddenly change from the financial circle to the film circle.

funds and stocks are not antagonistic, and many investors buy both. This book not only gives a lot of experience and suggestions on stock investment, but also gives nine suggestions on fund investment. Combined with the domestic environment, I selected five suggestions that I personally think are the most important:

(1) Fund companies had better buy directly from fund companies.

I strongly agree with this, because it is the most affordable way to buy. Before 22, I bought it on Alipay or egg rolls. Later, I bought it directly from fund companies. Generally, I can get a discount of % or .1% on subscription fees.

(2) It is difficult to choose a good car when choosing a suitable fund, but the fund has historical performance and the fund manager can make reference.

(3) Why take risks to invest in new funds instead of choosing old funds with excellent historical performance?

It is better to buy old things than new ones, which is not completely effective in the field of fund investment. Especially for new investors, it is not that new funds can't be bought or touched, but should be treated with caution in combination with various factors.

(4) Some investors are used to switching between different funds frequently, hoping to pick the one with the best performance. In fact, it is often futile to do so with half the effort. It is best to choose funds with excellent historical performance, buy them and hold them for a long time.

if you feel that learning the basics of investment, those investment ideas make you feel boring. Personally, I think Peter Lynch's book is the most suitable for you, because this master is good at making boring investment ideas easy to understand and reading very smoothly.

how much money a person can accumulate in his life does not depend on how much money you earn, but on how you invest and manage your finances. Thanks to the translators of this book, Mr. Song Sanjiang and Ms. Luo Zhifang, we have the honor to appreciate the classic theory of Peter. While studying, we should remember to translate what Mr. Song Sanjiang said in the postscript of this book: the national conditions are different, so we need to remember the way of master investment and use it carefully.