I encouraged my 14 years old son to read with me chapter 8 and chapter 20 of the “Intelligent Investor”. Just 2 pages a day but consistently, everyday for roughly 20 days. Here’s what happened.
We really enjoyed sharing together in a world of wisdom that “neither derives pleasure from being with the crowd or against the crowd”. I also thought that in this “social media-glued to the smartphone-world”, the lesson was really worth the effort. It felt that Marco Aurelio, Emerson, and many non-investors giants were right there with us.
The intelligent Investor of the future can easily be the one who is introduced to and prepared to use the tools of the trade at a very young age. The sooner he starts his journey the better. Incredible results are in store for him at the end of a long road; he must learn continuously and put into practice those concepts that come from timeless wisdom.
These evergreen principles I have mentioned multiple times before in this little unpretentious blog about investing and life and are based upon the two building blocks that are in chapter 8 and chapter 20 of the book by Ben Graham “The intelligent Investor”.
They contain and underpin the concepts of “Margin of Safety” and buying and thinking of stocks as a “Piece of a business”. Graham brightly reflects (in a style of writing that I find fascinating and so clear) about the temperamental qualities and the attitude toward the stock market that the Investor must pursue and develop. He also touches on how to handle the allure of speculation versus investing.
It’s breathtaking to acknowledge how all this can provoke curiosity and genuine interest in a young mind. It happened to my son in a course of about 20 days. It only takes about 20 minutes (2-3 pages) of reading a day to get an accurate overview of these two gems. Take notes or highlight the areas of the chapters that inspire you to look back and reflect on in future.
What a great and fun little commitment to do daily now in exchange for a huge reward in the future! Being prepared at a young age to handle the bizarre “Mr. Market” and learning how to deal with your own reactions to “his” mood swings is quite a reward indeed. I’ll say it again: reading those 2 chapters with my 14 years old son has been terrific. Like Buffett did, it’s good to read them multiple times; never too often for the thorough investment student of today who wants to be the competent intelligent Investor of tomorrow.
Feel free to comment and write to me at:
marco@blikebuffett.com