Benjamin Graham would skillfully be the most famous investor of the 20th century, if it weren’t for his student – Warren Buffett – likely the only person to outperform him in investing brilliance.
Coming from poverty he became an outstanding student at Columbia and upon graduation started his investing career with a job on Wall Street.
He wrote down his investing principles in 1949 inside The Intelligent Investor, which Warren Buffett calls the best book on investing ever written.
Here are 3 key lessons from Graham’s book to help you start investing:
- There are 3 principles to intelligent investing: analyze for the long term, protect yourself from losses, and don’t go for crazy profits.
- Never trust Mr. Market, he can be very irrational in the short and medium term.
- Stick to a strict formula by which you make all your investments, and you’ll do fine.
Among the library of investment books promising no-fail strategies for riches, Benjamin Graham’s classic, The Intelligent Investor, offers no guarantees or gimmicks but overflows with the wisdom at the core of all good portfolio management.
The hallmark of Graham’s philosophy is not profit maximization but loss minimization. In this respect, The Intelligent Investor is a book for true investors, not speculators or day traders.
He provides, “in a form suitable for the laymen, guidance in adoption and execution of an investment policy” (1). This policy is inherently for the longer term and requires a commitment of effort. Where the speculator follows market trends, the investor uses discipline, research, and his analytical ability to make unpopular but sound investments in bargains relative to current asset value.
Graham coaches the investor to develop a rational plan for buying stocks and bonds, and he argues that this plan must be a bulwark against emotional behavior that will always be tempting during abrupt bull and bear markets.
Since it was first published in 1949, Graham’s investment guide has sold over a million copies and has been praised by such luminaries as Warren E. Buffet as “the best book on investing ever written.” These accolades are well deserved. In its new form–with commentary on each chapter and extensive footnotes prepared by senior Money editor, Jason Zweig–the classic is now updated in light of changes in investment vehicles and market activities since 1972. What remains is a better book.
Graham’s sage advice, analytical guides, and cautionary tales are still valid for the contemporary investor, and Zweig’s commentaries demonstrate the relevance of Graham’s principles in light of 1990s and early twenty-first century market trends. –Patrick O’Kelley
“The wider Mr. Graham’s gospel spreads, the more fairly the market will deal with its public.” — Barron’s
“If you read just one book on investing during your lifetime, make it this one” — Fortune
“By far the best book on investing ever written.” — Warren Buffett
From the Back Cover
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 its original publication in 1949.
Over the years, market developments have proven the wisdom of Graham’s strategies. While preserving the integrity of Graham’s original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today’s market, draws parallels between Graham’s examples and today’s financial headlines, and gives readers a more thorough understanding of how to apply Graham’s principles.
Vital and indispensable, The Intelligent Investor is the most important book you will ever read on how to reach your financial goals.
About the Author
Benjamin Graham (1894-1976), the father of value investing, has been an inspiration for many of today’s most successful businesspeople. He is also the author of Securities Analysis and The Interpretation of Financial Statements.
- ASIN : 0060555661
- Publisher : Harper Business; Revised ed. edition (February 21, 2006)
- Language : English
- Paperback : 640 pages
- ISBN-10 : 9780060555665
- ISBN-13 : 978-0060555665
- Item Weight : 1.06 pounds
- Dimensions : 5.31 x 1.6 x 8 inches
- Best Sellers Rank: #36 in Books (See Top 100 in Books)
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