100-Day Reading Sharing Plan - Day 2

"Long-Term Investment" — Parames
1. Parames recommends readers to carefully read 91 books, with the preface author selecting 15 of them, as follows:
(1) Three books that inspired the author the most: Peter Lynch's "One Up On Wall Street", Friedrich Hayek's "The Road to Serfdom", Joel Greenblatt's "The Little Book That Beats the Market"
(2) Three must-read classics on value investing: Benjamin Graham's "The Intelligent Investor", Philip Fisher's "Common Stocks and Uncommon Profits", Warren Buffett's "Berkshire Hathaway Letters to Shareholders".
(3) Three great books on analyzing corporate competitive advantages: Michael Porter's "Competitive Advantage", Bruce Greenwald and Judd Kahn's "Competition Demystified", Pat Dorsey's "The Little Book That Builds Wealth"
(4) Three great books on investment psychology: Daniel Kahneman's "Thinking, Fast and Slow", Dan Ariely's "Predictably Irrational", Charles Mackay's "Extraordinary Popular Delusions and the Madness of Crowds"
(5) Three introductory books on Austrian economics and investing: "The Austrian School", "Austrian Economics for Investors", "Capital and Its Structure"

2. Even if you only "swim" in the stock market of the capital market in the future, you should still be aware of the "waves" and changes in other markets.

3. The purpose of value investing is to carry out rational investment behavior over the long term, to analyze the ability of target companies to generate future returns, and to provide competitive bids for these companies.

4. Buying on bad news is the best way to take advantage of "uncertainty".

5. Increasing positions during a stock market crash is one of the toughest decisions investors have to make, because sometimes stock prices really struggle to fully recover from the bottom. Nevertheless, for cyclical stocks where conditions keep changing in cycles, if we persist in buying, it usually yields good results.

6. Even when we are completely convinced by our own beliefs, we can still make mistakes, which makes diversification particularly important.

7. Some characteristics of an ideal company are: no hype, no continuous attention from analysts, and no institutional investors; no growth, but products that are repeatedly purchased; possessing technological depth; employees holding company shares.

8. In a bull market, many investors have already gained and continue to gain substantial returns from their investments, so they think we are the ones who are wrong. As Peter Lynch said in his "cocktail party" theory: "During this period, it should be the clients telling you how to invest. The only way to deal with the widespread frenzy at the end of the cycle is time and patience."

The patience mentioned here is not just about waiting for the stocks we invest in to rise, but more about being able to patiently wait for high-priced stocks to adjust to more attractive price levels. This kind of waiting is even harder.

Current holdings: $Amazon(AMZN.US) 60 shares, 20270115 250call 3 contracts at an average price of 29, sold 20261218 230put 1 contract at a cost of 28.7

$Rocket Lab(RKLB.US) Yesterday cleared 58.8 shares of small rocket, sold 1 contract of 20251226 55 put at a cost of 2.6, hoping to pick up shares at 52.4, and there is also 1 contract of 40 put expiring this week, should have exited safely, but also couldn't pick up shares.

$Cleveland Cliffs(CLF.US) 800 shares, no movement, talk again at 15

$Unitedhealth(UNH.US) 20 shares, no movement, talk again at 400

$Alphabet - C(GOOG.US) Only 10 shares, cost 138, consider adding below 300

$Taiwan Semiconductor(TSM.US) 10 shares, reduced at 298, current cost 252, add more at 270

$Alibaba(BABA.US) Cleared yesterday, garbage, waste of time

$Coca Cola(KO.US) This week's 70 put, probably won't pick up shares either.

Currently have 40% cash. Buy if there's a chance.