Parksy's Reviews > The Intelligent Investor

The Intelligent Investor by Benjamin Graham

by
Nophoto-u-50x66
's review
Jan 12, 11

bookshelves: finance, non-fiction
Read in January, 2011 — I own a copy

Was recommended as a must read for getting into investing.
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.

Main gist:
- 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 to do your research get into Market INDEX funds only...

big one:
- when everyone is buying, might want to sell or avoid - it will be inevitable that an overvalued stock will correct at some point.
- find those undervalued companies that have taken a hit in the market, but really their core business is sound and the market price doesn't reflect their worth... these are the ones to buy, as at some point they will correct and the market will recognize their value

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