The Best Investment Strategy - Just Keep Buying (Book Recommendation)

November 14, 2023 Just Sharing

Foreword
Summary - Savings
Summary - Investment
Conclusion

Foreword
Summary - Savings
Summary - Investment
Conclusion

Just Keep Buying: Proven Ways to Save Money And Build Your Wealth - Book Review and Insights

Foreword

I've been exploring investment and finance for quite some time, from technical analysis to value investing, iterating through various concepts. I consider myself well-versed in investment principles and believe that with the right concepts, wealth accumulation is just a matter of time. However, when discussing investment concepts with family and friends, I always find it challenging to clearly articulate the concepts and principles. Perhaps it's due to the lack of historical data for validation and substantiation.

Grandpa Buffett said

"In the business world, the rear view mirror is always clearer than the windshield." - Warren Buffett

With a background in data analysis, I understand that the future may not necessarily follow the trends of historical data. In reality, one cannot drive solely by looking in the rearview mirror. However, using historical data as a basis does allow us to simulate or predict the probabilities of what might happen based on past historical trajectories, enabling us to anticipate or mitigate risks. Therefore, stumbling upon this book with its significant title grounded in data science, substantiating correct investment methods, truly intrigued me to read.

Summary - Savings

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The book is mainly divided into two parts: savings and investments, each further divided into multiple subsections. In the savings section, it includes discussions on how much you should save, how to save more, whether to take on debt, whether to rent or buy a house, when you can retire, and more chapters. I believe those with a foundational understanding of financial management probably have a general idea. However, for investment novices, I believe it is helpful in establishing basic concepts.

Here, I'll mainly share a few parts that I consider to be new concepts in my understanding.

How to Spend Money Without Guilt?

Actually, my original idea about saving was that not spending if it's not necessary, the money naturally accumulates. However, distinguishing between what is necessary and what is not, in this rapidly changing era, is quite challenging. Also, holding onto this perspective, sometimes I find myself just surviving instead of truly living. Having more money, yet living a more difficult life.

So, the book does elaborate on how to spend money, and I believe it's beneficial not only for individuals like me and people who tend to spend all the money what they earn but also aspire to save.

How much lifestyle inflation is harmless?

This part is also something I find quite important. Nowadays, everyone has at least some notion of financial management. People tend to live frugally in their daily lives, but often, when their circumstances improve, such as through promotions or salary raises, they tend to engage in more retaliatory spending, causing a situation where even though they earn more, they end up living poorer than before. The book explains the proportion of spending and empirical calculations, which can clearly guide individuals on how to earn and spend more without shrinking their assets.

Summary - Investment

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The next section covers more advanced aspects of savings, including why you should invest, what you should invest in, why you shouldn't buy individual stocks, how early you should start investing, why you shouldn't wait for a market downturn to buy, how luck is involved in investing, why you shouldn't fear market fluctuations, how to buy during times of crisis, and when you should sell.

Also, there's a section that I consider a kind of life philosophy, including chapters on 'Why you never feel rich?' and 'The Most Important Asset'.

The book provides empirical data for all the investment-related aspects discussed above, allowing you to have a more precise understanding of the data theories behind your investment concepts. I believe that as long as one follows these principles by excluding speculative mentality and ignorance, everyone can gradually accumulate wealth.

But the most important are the last few chapters, such as The Most Important Asset, where the book provides examples

I bet if all of Buffett's assets were offered to you, not a single person would be willing to exchange places with him right now. Conversely, if Buffett could live for another twenty years, he would also be willing to be penniless at this moment.

The most important asset for a person is actually time. Earning money, saving, and investing are all about having more of one's own time. Balancing between earning, saving, investing, and living a good life within the short decades of life depends on one's clear understanding of what they want and what they desire.

Conclusion

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I used to think that investment-related books were all the same, but books that substantiate correct investment concepts with data-based evidence are indeed rare. The conclusion drawn towards the end of the book about time being the most important asset stands out. It's a book suitable for both investment beginners and veterans alike. I hope that beginners in investment can deepen their understanding of correct investment concepts through this book. Furthermore, I aspire to strike a balance where I pursue wealth while also savoring life without getting priorities mixed up.

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