We see Warren Buffett and other investors successfully making money in the stock market. Some traders have learned something even from turtles. There are several models by which people, successful investors, have managed to make money in the stock market. We discussed these practical aspects of the books (all of which you can see at the end) over coffee in the HotNews.ro studio with investment expert Kelin Metesh, deputy general director of Fondul Proprietatea.

Those of you who want to start investing should study some books to help you.

“Michael Covel’s The Complete TurtleTrader tells the story of Richard Dennis, a successful investor in the 1970s who made a bet with his partner at the time,” says Metesh.

Denis assumed that a good trader can be learned.

“His partner said that this is not true: to be a good trader, there must be certain innate qualities. Starting from this debate, Denys conducted an experiment, starting with the turtles he saw in Singapore,” he added.

• They were farm turtles who managed to teach other turtles to evolve. He created a similar system by applying it to the markets. He announced that he was hiring novice traders with no experience.

• He selected 10 people with various experiences not related to the economic sphere: a pianist, a designer, etc. After 2 weeks of training, he offered them money to invest on their own. In 5 years, they made a profit of 175 million dollars (this happened in the 80s).

The discussion is practical and to help you, I have “broken” the clip into several topics.

0:00 INTRODUCTION

1:13 Two streams of successful investors who managed to make money on the stock market

3:26 What Robert Hegstrom’s book “Warren Buffett’s Way” teaches us in practice

7:30 You should pay attention to the management of the company, how open and transparent these people are and whether their interests coincide with ours

9:04 An important indicator that you should pay attention to if you want to invest in a company (from the book “The Warren Buffett Way”)

10:08 Why is this return on capital important?

11:00 Warren Buffett also looks at the owner’s return, that is, the profit of the person who owns the company

12:24 How to calculate the owner’s earnings

13:20 On the basis of the profit indicator of the owner, you can calculate the intrinsic value of the company. What it is and how it helps you understand whether you can invest based on stock price

17:30 An indicator that says a lot about the quality of management

21:30 What you need to have if you want to invest in the stock market – what Morgan Housel’s book: The Psychology of Money is about

25:06 Why Buffett is the most successful investor in history

25:40 Which investor has more profit than Buffett, about whom few have heard / What is written in the book “The Man Who Unleashed the Market” by Gregory Zuckerman

28:53 What Michael Kovel’s book “The Complete Turtle Merchant” teaches us.

33:28 What is an edge / How to weigh good and bad decisions

36:20 Why it’s good to sell when you’re wrong

39:18 What book teaches us how to make big short-term profits: 100 Baggers – Christopher W. Mayer

*Books we refer to in the discussion:

• The Warren Buffett Way, Robert Hegstrom

• The Psychology of Money – Morgan Housel

• The man who decided the market is Gregory Zuckerman

• Complete TurtleTrader by Michael Covel

• 100 Baggers – Christopher W. Mayer

• Antifragile – Nassim Nicolas Taleb

• The richest man in Babylon is George S. Clayson

• Our long road to economic freedom – Johan Fourier