The Intelligent Investor
The classic text annotated by noted financial journalist Jason Zweig to update Benjamin Graham's timeless wisdom for today's market conditions. Warren Buffet: "By far the best book on investing ever written."
Considered the greatest investment advisor of the twentieth century, Benjamin Graham's philosophy of "value investing" -- which shields investors from substantial err
... Of course it's not that easy. This book is long, dense, and dry. And even if you read and absorb every page, you're still not going to be Warre...more
First published in 1949, this version that I read was re-published in 2005 with a forward written by John Bogle who started Vangard Mutual Fund. Bogle’s forward serves as a very good summary of The Intelligent Investor, highlighting key points clearl...more
And there are some radical ideas, despite it's age, that fly in the face of "conventional wisdom". The most important example in my opinion was the idea of how much risk you should have in your investments:
It was the best $8 ever spent. It teaches you some basics about the behavior of the market and it teaches you to be very careful. I learned some...more
The secret to your financial success is inside yourself. If you become a critical thinking and you invest with patient confidence, you can take steady advantage of even the worst bear market. By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.
Now available for the first time in paperback
The Classic Text Annotated to Update Graham's Timeless Wisdom for Today's Market Conditions
The greatest investment advisor of the twentieth century, Benjamin Graham taught and inspired people worldwide. Graham's philosophy of "value investing" -- which shields investors from substantial error and teaches them to develop long-term strategies -- has made "The Intelligent Investor" the stock market bible ever since...more
The other Idea is the emotional Mr. Market. The stock market as a speculative investment is a zero-sum game, and Mr. Market plays the role of the crazy trader who trades stocks at a different price everyday. Of course, the book encourages investing for the long t...more
1) Your main goal should be to not LOSE money; so understand the distinction between 'investing' and 'speculating,' and understand that most so-called investors are actually speculators. Minimize the extent to which you are a speculator. If you go in trying to get rich quick, you'll lose.
2) To that end, trailing P/E should be less than 15 and P/E * P/B (tangible) should b...more
Whether you are an avid investor with a complex understanding of the markets or a beginner who is yet to start learning, there is little doubt that you have heard of Warren Buffet. He represents a level of success that very few people ever reach. Most of us know Buffet as the second richest man in...more
Probably the most famous of all books about investing in stocks and bonds. The book was first published in 1949. This revised version of the 1973 fourth edition, published in 2006, contains detailed commentary and end-notes by Jason Zweig, a financial journalist.
Graham, born in 1894, came from an educated, but impoverished, background, went to Columbia University on a scholarship and was offered a faculty position at the age of 20 on the basis of his brilliant academic record. He had a long and...more
I have to disagree with Buffett on this one, but that's because I'm a very different type of investor than Buffett. I'm a Boglehead (follower of Vanguard founder John Bogle), so I invest through broadly diversified, passive index f...more
Overall very readable - some chapters get a little heavy into issues i'm not really interested in, like bonds for example - but overall a very good place to start.
- buy value, and it tells you how to identify value - mostly looking at P/E, growth, and dividend history
- don't listen to Mr. Market - the day to day changes of the market shouldn't affect your opinion if you've done your research
- don't day trade
- if you aren't going...more
If value investing had a holy book of scripture, this would be it! Not only was Ben Graham's timeless investment advice unassailable, but the commentary's after each chapter by Jason Zweig were current and refreshing.
While I learned and re-learned many truths with this book, some of the most valuable ideas were to distinguish between "investing" and "speculation." Graham asserts that most of what is called investing today would be more accurately named speculation. Also...more
As a manual for value investing it seems more hype than practical because the main text is rather dated. The end of each chapter has commentary which attempts to rectify that problem, but with limited success--at least in the early sections I read. If your main concern is just to read a highly regarded financial book, this is definitely it though.
As Mr Buffett has said, there is no great secret in investing - buy low and sell high - but Graham takes the time to educate and talk through why this tends to be so hard for mortal beings as well as some guidelines to not let yourself be carried away by Mr Market. Investing is like...more
The newest edition as been updated with a chapter of commentary after each of Graham's original chapters that attempts to discuss how Graham's advice would have held up th...more
The first hundred and fifty pages were absolutely painful. Graham pointlessly rambles about stock returns from the mid 1800's to the 1970's. After that, however, the books gets much better as Graham explains the foundations of analyzing securities va...more
I believe the primary reason why Graham’s investing philosophy permeated with me so seamlessly is due to the irrefutable logic behind all of his arguments. The key takeaway I gleaned is identifyin...more
The rules are simple but the seeds of failure are sown due to emotion. A watched pot does not boil over. However the vast majority are taken to the cleaners in the stock market because they don't do any research, ditch sound reasoning and are swayed by what others say.
This book is for those interested in...more
"If the investor concentrates his portfolio on common stocks he is very likely to be lead astray either by exhilarating advances or by distressing declines. This is particularly true if his reasoning is geared closely to expectations of further inflation. For then, if another bull market comes along, he will take the big rise not as a danger signal of an inevitable fall, not as a chance to cash in on his handsome profits, but rather as a vindic...more
I enjoyed learning that a careful analysis of the basic elements that make up the balance-sheet of a company can lead one to have better chances of getting a decent return on his invested capital.
I have to admit that I skipp...more
The advice itself felt less applicable in today's world, because most people should just own index funds, whereas this book focuses on individual stocks, so this felt more like background information. The commentary does try to update this to the current era, but even so, it does not feel very relevant today.
I was also reading the e-book version and the updated annotations were in the back of the book and I could not tie those to the actual chapters so that made the updated examples very hard to connect wi...more