A column currently published on Toyo Keizai ONLINE: Buffett’s mentor’s advice
Good morning, this is Matsushita.
From next month, the Makoto Investment School
for preparing the Investment Power Training Course
I am rereading the book I previously read, "The Secrets of Your Money and Your Investment Brain."
I am rereading it.
When I read it about two years ago,
I thought it was a wonderful book, but
when rereading, it further deepens our brains,
and to be frank, it is a book that astonishes me,
and I absolutely want you to read it.
The problem of "not being able to control your mind"
is held by almost all investors,
but this is a fact that we can understand as the workings of our brain,
its functions, and physiological responses.
With that in mind, the book teaches how to use other brain functions
to make a profit.
However, unfortunately, this book is already out of stock,
and only used copies are circulating, with the price exceeding six times the list price,
which is 2,000 yen (+ tax).
The fact that such a good book disappears unsold also reflects
the lonely reality of Japanese investors.
I will continue to read this book repeatedly,
understand the nature of a losing brain, and teach in the school
how to use a winning brain.
In the investment power training course starting next month as well,
I will teach that part abundantly,
so please look forward to it.
Today, I will introduce two particularly memorable pieces of advice from predecessors.
The first is advice from Benjamin Graham, the mentor of Warren Buffett, the world’s greatest stock investor.
The mentor of Buffett is Benjamin Graham.
Benjamin Graham, the great investment analyst, said in an interview during his lifetime that investors should run a paper portfolio for a year.
(Excerpt from the above book)
The second is advice from a psychologist.
The psychologist Baruch Fischhoff has studied over 30 years
the overconfidence bias.
Fischhoff recommends using an investment diary.
“Record what you were thinking when you made your predictions,”
Fischhoff says.
“And make those predictions as clear as possible.”
Graham, who is Buffett’s mentor,
recommended to individual investors to use a paper portfolio
(i.e., trading simulations),
and Fischhoff, the psychologist,
advise writing an investment diary and recording what you were thinking.
Thus, great investors and psychologists convey the necessity and meaning of an “investment diary.”
And as someone with investment experience,
as someone who has lost money and earned profits,
I have recommended an “investment diary” for over ten years.
Across time and across borders,
professionals from various fields with different perspectives
are recommending the same tool, which means there is truth here.
An “investment diary” is an essential tool and task for individual investors to become investors who earn profits.
I confirmed that the book "The Secrets of Your Money and Your Investment Brain" recommended an investment diary,
so I am recommending it with even more confidence.
The investment diary, recommended by great investors and psychologists,
is available for purchase from the following link.
