100-Day Reading Sharing Plan — Day 56

$Amazon(AMZN.US) $Novo Nordisk AS(NVO.US) $Cleveland Cliffs(CLF.US)

"A Random Walk Down Wall Street"

1. For a buyer, an investment is worth a certain price because they expect to sell it to someone else at a higher price. In other words, the investment is self-sustaining. New buyers similarly expect future buyers to be willing to pay an even higher price.

2. Neither individual investors nor professionals are immune to past mistakes.

3. October is an especially dangerous month for stock speculation. Other particularly dangerous months are: July, January, September, April, November, May, March, June, December, August, and February.

4. In my personal experience, the people who consistently lose money in the market are those who fail to resist being swept up by events like tulip bulb mania. This lesson is so obvious, yet often overlooked.

5. However, just as warnings on cigarette packs don't stop many people from smoking, risk warnings like "investing may endanger your wealth" cannot stop speculators from spending big money to subscribe to new stock offerings.