3 Investing Lessons from Breaking Down Walls
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While I enjoy brushing up on finances with a good book even now again, I also love reading beyond the numbers.
I finished reading Breaking Down the Walls and it is one of those books that make finance (in this case investing) fascinating and part of it is the perfect mix of memoir, money, and history.
It’s a new memoir from Norma Yaeger, founder of both Yaeger Securities and Yaeger Capital Markets. She had spent several decades in the investment business and has a number of gems and stories to share in her book. I want to share a few investing lessons and highlights that I enjoyed.
Your Money, Your Choices
While it's understandable to want to get information from others about investing, in the end it's your responsibility on how you do it. I know many Couple Money readers have worked hard for their paychecks, so I encourage all of your to make the most of everyone.
Yaeger does a wonderful job explaining how you have the ability to manage your investments wisely even when there are some brokers in Wall Street who tell you otherwise.
Investing Versus Trading
Yaeger succinctly explains the two schools of thought when it comes to the stock market. there are investors and then there are traders.
Investors are those looking at the big picture and willing to hold on to their investments for years. They will carefully research every purchase they make. The noise of most financial/stock market show and columns is ignored.
Traders on the other hand are looking for the quick turnaround. Their main focus is the stock price. With the tools available today, there is a strong temptation to day trade, but unless you understand and are willing to accept the risks involved, you're better off avoiding it.
Treat Investments Like People
I love Yaeger's idea of vetting investments by getting to know the corporations you invest in.
Many times, personal finance magazines, shows, and websites give a few superficial numbers about a ‘hot' investment to entice people to buy, but true investing involves more. It's about become familiar with how the company is operated and discovering their financial health.
Even if you choose to invest in index funds, make sure you understand what you're investing in. What fees are involved?
Thoughts on Breaking Down Walls
I thoroughly enjoyed reading Breaking Down the Walls. There is more to her book then investing advice.
There are some wonderful nuggets as Yaeger was able to clearly explain the differences between the markets then and now while sharing her insights on the investing in an engaging way.