When it comes to money, being an adult has provided an ongoing-financial education. Running my own business, dealing with life’s expenses, and planning for the future teach me much valuable lessons every single day. I’ve supplemented my personal experience with lots of reading: since 2015, I’ve read about sixty-six business and financial books š
Just today I finished reading “7 Secrets to Investing Like Warren Buffett,” by Mary Buffett & Sean Seah (thank you, Sacramento Public Library). The book gives a basic primer on “value investing,” which is what Warren Buffett is known for.
I am still taking in the basics of this subject, but as I understand it, value investing is about learning to analyze the financial strength of companies so that one can pick quality stocks.
Obviously, stock picking hasn’t been a priority for us–though we have had a few entertaining experiences with it. I’m not ruling anything out, however, especially since stock market investing overall is such a keen topic of interest for me.
Meanwhile, a little more learning never hurt š
As for the book, I understood the basics but am still digesting the terminology, terms like:
- Balance Sheet
- Income Statement
- Cash-Flow Statement
- Price-to-Book Value
- PE Ratio
- Dividend Yield
- Growth Formula
I feel that with all the financial reading I have done, I really should have a better grasp of terms like these. But that’s just me being judgmental š
I’m reminding myself that a few years ago I didn’t fully understand what “APR,” “index fund,” and “IRA” were.
Onward with the learning!