The Psychology Of Money PDF book is for those who have had a lot of Their skin in the game of the stock market and thought of creating wealth from it.
The first level of investor is the one who knows money can be made in the market but doesn’t know how and starts to trade without any knowledge.
The second-level investor has made a profit or loss on his capital and starts to find out where he has gone wrong and starts learning about some basic concepts such as the PE ratio.
The third level of investor starts finding value in whatever the scrip he has been following and starts finding justification that it is costly or cheap and buying or selling them.
A fourth-level investor follows and checks if the price has gone up or not very often and loses faith if it doesn’t go up after he bought it, and if the price doesn’t go up he sells it and looks for another one. in a short span of months. Again goes back to the drawing board and finds what went wrong.
Then comes the whole talk of buffetology and starts to find companies like that and invest in them if he felt that it was cheap.
But everyone forgets that buffet is buffet because of his principles and patience which helped him in compounding for a very long time such as 70-80 years which very few do it.