Practical Investment Lecture - Kostolany's Investment Series 3

Author André Kostolany · Publisher Mirae N · Published 2023-09-15 · ISBN 9791192519906

About the Book

This book contains André Kostolany's direct answers to over 100 questions posed during more than 100 investment seminars. Kostolany was a legendary European investor who started stock market investing at age 18 and mastered 70 stock markets throughout his life. His answers range from fundamental questions like "What is the stock market?" and comprehensive questions like "What qualities should a good investor possess?" to specific questions related to stock investment strategies such as "What is most important for long-term stock prices?" and "How can one tell if the market is overbought or oversold?".

Through this book, readers can learn the know-how accumulated by this legendary European investor over about 70 years, including moments of bankruptcy, presented in a question-and-answer format. However, like his previous book, "The Art of Contrary Thinking," this book does not offer a ready-made meal but rather helps readers cook their own preferred dishes. This aligns with the Chinese proverb Kostolany often quoted when asked for stock recommendations:

"If you have a friend, give him a fish. But if you truly love your friend, teach him how to fish."

Table of Contents

Foreword: Kostolany's Wisdom on Investment and Life - Gottfried Heller
I'll Teach You the Recipe for Investing - André Kostolany

1. This Is the Stock Market
What is the stock market and what is its role?
What is a security?
What types of movable assets, or securities, are there?
What role do stocks play?
What is the trading volume of securities?
How long is the medium term?
How long is the long term?
What critically influences short-term prices?
Are there more optimists or pessimists in the stock market?
And 43 other questions and answers

2. Economy vs. Stock Prices
What economic reasons change the mood of the stock market?
Can stock prices rise even when taxes increase?
What is the relationship between interest rates and stock price trends?
Why do you criticize economists so much?
What is more important for a country's prosperity and development: the economy or finance?
And 25 other questions and answers

3. Investor vs. Speculator
Who is a shareholder?
What is the difference between speculation and investment?
Who has been more successful: speculators or investors?
What qualities should a good investor possess?
What are bad characteristics for investment?
Is it okay to buy stocks on credit?
How much can a good investor earn in a year?
Is investing addictive?
Should investors act morally?
Should I listen to my wife's or girlfriend's opinion?
Can an investor make decisions while intoxicated?
When should an investor settle accounts?
And 58 other questions and answers

4. Information vs. Judgment
What do you think about secret tips?
How important should expert recommendations be considered in the long term?
What do you think about stock charts?
What do you think about insider information?
Do I need to know detailed information about balance sheets, dividends, etc.?
Should beginner stock investors also follow the motto "do it yourself"?
And 19 other questions and answers

5. Futures, Options & Bonds
What do you think about commodity futures trading?
What do you think about dollar zero-coupon bonds?
Can zero-coupon bonds be bought on credit?
But isn't it advisable since Swiss franc interest rates are low?
What do you think about options?
Should I buy distressed bonds?
How could a 1,000 franc bond become 35,000 francs?

Conclusion
Appendix: Kostolany's Test - What is My Investment Type?
Kostolany's Sayings