Learning About the Stock Market

Video Transcript

"Find an old guy. Hi, I'mRoger Groh at Groh Asset Management. That would be my advice if you're thinking about learning about the stock market. The reason is, that the old guys or women have probably been through lots of ups and downs and hopefully the wisdom that has come from the pain and gain of those cycles can be passed onto you. Perhaps in a more formal setting, other ways that you could learn would be to go back to the classics or perhaps to the masters. If you look at Graham and Dodd for instance, such a good place to look, they wrote, they were professors at Columbia and wrote textbooks that really served as the backbone for much of the investing activity globally. Other masters that you could read, go to the annual report for Berkshire Hathaway. In the very beginning of that report, there's a letter that the chairman Warren Buffett writes to shareholders. It's only a couple of pages; it's great. Look at it every quarter for the last ten or even twenty years to get a sense of how this legendary man invested the cash in their company to become one of the world's richest man. Other things that you could look at, there was another fellow, his name is Peter Lech who years ago worked for a Fidelity. He ran the Magellan Fund. If you're old you remember him. He has written a series of books that are wonderfully practical that you could pick up at the library and read. Although the companies listed in there might be a little bit old, the concepts are not. They are valid and live today. So, hope that helps a little bit. Be careful. Remember, you're playing with pros once you weighed into the stock market and a probably is worth your while practicing before you play. I'm Roger Groh with Groh Asset and thank you very much for spending time with me."