Investing is a Psychological Game - Kostolany's Investment Series 2

Author André Kostolany · Publisher Mirae N Media · Published 2023-11-10 · ISBN 9791192519890

About the Book

Kostolany's Investment Cafe, 'Stock Market Psychology' Lecture Series

"I insist that the role of psychology in the stock market cannot be overemphasized. In the short and medium term, psychology determines 90% of the stock market." "In stock investing, information is bankruptcy." André Kostolany, who made these statements, began investing in securities at age 18 and became a legendary European investor, having explored 70 stock markets over 70 years. In Korea, where there is an excessive focus on economic theory, he was relatively unknown compared to Warren Buffett, George Soros, or Peter Lynch, until his book, 『Money, Master the Game』, was translated and brought him recognition.

In this book, Kostolany argues that the stock market is by no means an organized market driven by objective information and vast data, but is profoundly influenced by the human element of 'psychology'. He broadly categorizes stock investors into two types: conviction-based investors and herd-following investors, advising that conviction-based investors are true stock investors who will ultimately win the investment game in the long run. These conviction-based investors possess the four essential elements for success, dubbed the 4Gs: Geld (money), Gedanken (thought), Geduld (patience), and Glück (luck). In summary, Kostolany's investment strategy involves accurately assessing the current phase of the stock market, buying stocks with one's own money at the end of a downward trend and the beginning of an upward trend, and then employing a Buy & Hold strategy with patience. Conversely, when many people rush into the stock market, clamoring to buy shares, he advises using a Sell & Wait strategy—selling stocks and withdrawing from the market. While this book does not offer specific strategies like "buy and sell at this time" or "do this when the figures are like this," it helps readers manage 'psychology' through engaging stories, almost like reading a novel.

Contents

Lecture One - The Stock Market, 90 Percent Psychology

Lecture Two - The Allure of Money
Have Cash
'Enemy of the State' Kostolany
No More Talk of Money and Interest
Debtors and Beggars

Lecture Three - The Ignorant Masses
The Logic of the Stock Market Differs from Everyday Life
When Prices Rise, People Rush In; When Prices Fall, People Leave

Lecture Four - Panic: An Example of Mass Psychology
Gorbachev's Price Surge
Can Computers Invest?

Lecture Five - On Self-Proclaimed Prophets, Professors, and Masters
Misleading Name: Junk Bonds of Venture Companies
People Don't Trust Masters and Don't Care What They Say

Lecture Six - The Stock Market and the Rest of the World
Investment Comes Before Music
The Politicized Stock Market
Red Bicycle
When Stock Investing Is the 'Talk of the Town'

Lecture Seven - My Stock Market Zoo
Bears and Bulls
A Very Special Breed: The Investor

Lecture Eight - Entrepreneurs, Customers, and Other Slavs
Big Corporations and Me
Stories of Great Industrialists
The Customer Is the Enemy

Lecture Nine - Psychology of the Small Stock Market: Superstition, Idolatry, and Gambling Addiction
The Stock Market and Roulette - All Are Games
People Win and Lose
Stock Market Addicts

Lecture Ten - The Value of Fools
Too Clever People
There Are Also Learned Fools
IOS and Me - From the History of Human Folly

Lecture Eleven - No Two Stock Markets Are Alike

Final Conversation - My Three Careers
The Jewish Trait I Inherited
Bow Tie and Monocle
One Doesn't Have to Be Rich - Rather, One Must Be Free