❆ The Intelligent Investor kindle Epub ❤ Author Benjamin Graham – Tshirtforums.co.uk

The Intelligent Investor chapter 1 The Intelligent Investor, meaning The Intelligent Investor, genre The Intelligent Investor, book cover The Intelligent Investor, flies The Intelligent Investor, The Intelligent Investor e1ffb0adcca84 More Than One Million Hardcovers SoldNow Available For The First Time In Paperback The Classic Text Annotated To Update Graham S Timeless Wisdom For Today S Market ConditionsThe 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 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 Thorough Understanding Of How To Apply Graham S PrinciplesVital And Indispensable, This HarperBusiness Essentials Edition Of The Intelligent Investor Is The Most Important Book You Will Ever Read On How To Reach Your Financial Goals


10 thoughts on “The Intelligent Investor

  1. says:

    Benjamin Graham s last line in The Intelligent Investor sums up the entire book in his trade mark common sense way To achieve satisfactory investment results is easier than most people realize to achieve superior results is harder than it looks 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 clearly So I found it useful to read the forward again after finishing the book as a quick refresh of its content.Graham s language may be a bit old fashioned, so some may find his writing style takes a little bit of getting used to However, once I got my pace of reading going, I find the old fashion style gives me a sense of comfort and assurance as if a grandfather was sharing all his valuable experience with me Certainly good things stand the test of time, just as sound values Sound investment principles generally produced sound investment results we must act on the assumption that they would continue to do so Graham is very clear form the start that he is not writing for speculators but for the layman who wants to have a sound approach to grow his weath steadily He believes that lay investors can achieve a creditable if unspectacular result with a minimum of effort and capability since anyone by just buying and holding a representative list can equal the performance of the market averages He warned those who tries to beat the market, as many smart people have tied to do this and failed How he explained this makes a lot of sense to me every stock market broker thinks he can outdo the market That means the stock market experts as a whole is trying to beat itself a logical contradiction They just cancel each other out.Thus, one should not rely on a financial advisor who promises the sky and raise your hopes that he can do better that the market average That, claims Graham, is not possible The real money in investing will have to be made, as most of it has been in the past, not out of buying and selling but out of owning and holding securities, receiving interest and dividends and benefiting form their longer term increase in value Graham chastises average investors for their sloth and ignorance, for willingly giving up their responsibility and rights as business owners to management This, he feels, is due to the institutionalisation of financial services which has left investors a step removed from ownership.He disagrees with the commonly held view that If you don t like the management, sell the stock He feels this does nothing to improve bad management, only puts down the price of the stock and shifts the ownership to someone else Investors as a whole seem to have abandoned all claim to control over the paid superintendents of their property Ultimately, it is important for investors to give themselves a margin of safety by buying a stock at a price that is lower that its appraised value and to diversify the portfolio These would put the investors in good stead, as against speculators.I like this book It does not give you many formulas for security analysis Graham says you can read further in his earlier book Security Analysis What The Intelligent Investor does is that it lays the foundation for laymen by giving a sound approach to investment, written with common sense and simplicity.


  2. says:

    Warren Buffett s pick as the greatest investment book of all time, and it really does live up to that review Some highlights 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 be or 22.5.3 But don t buy SIMPLY because the company is cheap look for EPS growth ideally 30% cumulative over the course of the prior 10 years This is a good indicator of a stable and sound business model.4 Look for a current ratio current assets current liabilities greater than 2, as a signal the company is financially secure.5 Strongly prefer companies with dividends, and with consistent dividend growth.6 Don t invest in companies that have had negative earnings per share in the last three years.7 But Graham s real key is PSYCHOLOGY Market crashes should be thought of as exciting and delightful fire sales on the best stocks By contrast, be terrified when the market has gone up far, fast, and RESIST THE URGE TO START buying stock when the market is up People criticize Graham for advocating market timing, but really he advocates a form of dollar cost averaging, where one increasingly invests in companies that look objectively undervalued when the market goes down, and assuming one doesn t hold forever divests slowly as the market goes up, if in one s view one s individual stocks become over valued he does not advocate investing or divesting simply because the market goes down or up, one always looks at individual companies He also has very interesting discussions of bonds, though I found them less relevant because I don t invest in bonds directly To Graham, incidentally, Buffett added A know when to break these rules B prefer companies with wide inherent moats his famous example is that if you gave him a billion dollars today, he could not create a brand that would compete effectively with Coca Cola C buy private, illiquid but outstanding businesses on the cheap e.g., See s Candies D own and use an insurance company business to create float from premiums that can be used for investing E invest in what you can understand Sadly C and D are not feasible for the rest of us, but between Buffett and Graham the small time investor has about all he she needs in order to at least not get hosed


  3. says:

    OK, the recent stock market drops scared me I got hit by the drops in 99 and said I would never let it happen again This time I had what I thought would be value stocks The problem was I didn t know if I should sell or hold the stocks So for 8 I bought a used copy of Ben Graham s book I stopped reading my other book and read this book like crazy 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 key s to determining the value of stocks and to buy stocks with a margin of safety relative to other stocks I did find that some of my Value Stocks weren t all that great I absolutely recommend this book, especially right now Now is a great opportunity to pick up value stocks that have dropped a bunch They dropped not because that are bad stocks but because Mr Market has dropped and they ve been pulled down.


  4. says:

    If you read investing books or magazines, you ve undoubtedly heard of Benjamin Graham He s considered the father of value investing, and Warren Buffett is one of his disciples In fact, The Oracle of Omaha called this book the best book about investing ever written 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 funds instead of individual stocks and bonds I read this book to learn Graham s general investing advice and opinion of the market, not to learn his formulas for analyzing the values of stocks and bonds.Much of the book s data is understandably stale, since it was first published in 1949 You can definitely tell it was written in the pre Internet era of investing, before people had easy access to mutual funds, ETFs, 401 k s, IRAs, and day trading.Although the financial world has changed much since his time, Graham s fundamentals remain solid For most investors, he recommends a diverse portfolio of bonds and stocks held for the long term He strongly advises against trying to time the market, and says to never invest in something you don t understand Graham warns against being an emotional investor he says to invest based on arithmetic, not optimism To achieve satisfactory investment results is easier than most people realize to achieve superior results is harder than it looks The real money in investing will have to be made as most of it has been in the past not out of buying and selling, but out of owning and holding securities, receiving interest and dividends, and benefiting from their long term increase in value NotesGraham divides investors into 2 camps defensive and enterprising The defensive investor is risk averse, seeking to preserve capital and obtain a reasonable return The enterprising investor is risk tolerant, willing and able to analyze stocks and bonds to find higher returns Defensive portfolio 25 75% US bonds, depending on investor s risk tolerance and situation common stocks of leading or prominent US companies blue chips , purchased at a reasonable price based on historical data Enterprising portfolio buy low, sell high growth stocks value stocks take advantage of special situations like mergers and acquisitions, business reorganizations, etc.You can t forecast or time the market.Unless you re forced to sell your shares, you shouldn t care about share prices Ignore the daily ups and downs of the market.Use dollar cost averaging or formula timing plans to remove the psychological factors of investing Risk vs safetyRisky investments are those that have a chance of declining in price, but a history of positive returns You don t care about temporary declines as long as you hold the investment, because it s not until you sell that the decline would be realized.Unsafe investments are those with history of poor returns over many years these are not wise investments.Prices sometimes reflect the present, and sometimes reflect the future because you can t tell which, it s hard to determine if stocks are fairly priced Margin of safetyMargin of safety is the secret to sound investing.This is a business value over its debt its ability to earn than it needs to cover its expenses , or the difference between price and value.Guarantees a better chance of profit than loss not a guaranteed profit.Diversification across several stocks increases the certainty of profit.The margin is based on statistical data, not speculation.


  5. says:

    Okay, this is the book to read if you are serious about investing in stocks Benjamin Graham s value investing method is the time tested choose em carefully and hold em long term strategy used by Warren Buffett Benjamin Graham is the man that Warren Buffett calls The Man So, you know, if you want to be rich like Warren Buffett, read this book 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 Warren Buffett But you ll be a lot informed about stock investing Most of it is about how to analyze the actual long term value of a stock, which means diving deep into company financial statements Not just picking one based on a favorable history or because you think you can predict a stock is about to take off because you re sure the company is the next Apple Hey, remember in the 80s when Apple seemed all but dead Meanwhile, how s that Kodak stock looking Make no mistake, this is not one of those self help How to beat the market books It s pretty much a textbook, with graphs and charts and long complicated financial terms that you need to study as seriously as you studied for your college final exams well, maybe seriously than that if you re really going to get anything out of it It is not for the dabbler, the mildly interested, or the can t wrap my head around complicated formulas investor.No, no, I have not gotten rich like Warren Buffett I didn t buy Apple in the 80s, either.


  6. says:

    I had high expectations from the book, which it failed to meet But then, this book is too old to have a lot of relevance now.The essence is that an intelligent investor is one who doesn t think of this as gambling Do solid fundamental, qualitative analysis rather than looking at charts Know what the company stands for And you can t beat the market Maybe if you know nothing about the stock market, then this book is for you to get an idea of what you are getting into and what to expect The first 10 chapters were a drag They should ve been 10 pages max, with examples This is the content in it s entirety No one can beat the market consistently Dollar cost averaging Invest the same number of dollars in stocks each month This way you buy when cheap and less when expensive You cannot beat the market even if you are an active investor Think long term, index funds Qualitative analysis over speculation Diversify Look for large companies with dividends Buy cheap, sell high and NOT vice versa most people get this wrong purchase of bargain issues invest in closed end fundsCouldn t go through the last 3 4 chapters, since I ran out of patience Some notes from chapter 11 16 Estimating value of a stock future earnings.general long term prospectsmanagement in the companyfinancial strength and capital structuredividend recordearning 8.5 2 growth rate Earnings per share beware of tricky caveats intended to bump earnings.learn how to see fishy stuff in earnings.read backwards, read , read the footnotes of earnings report.Things to look at in a company ProfitabilityStabilityGrowthFinancial Position.DividendsPrice History.Seven statistical requirements for inclusion in a defensive investor s portfolio Adequate size A sufficiently strong financial condition For industrial companies current assets should be at least twice current liabilities a so called two to one current ratio Also, long term debt should not exceed the net current assets or working capital For public utilities the debt should not exceed twice the stock equity at book value.Continued dividends for at least the past 20 years No earnings deficit in the past ten years Ten year growth of at least one third in per share earnings Price of stock no than 11 2 times net asset value Price no than 15 times average earnings of the past three years.


  7. says:

    To be honest, the commentary and footnotes of this book were useful to me than the original content The book in its original form is obviously outdated in terms of the specific examples it gives for ways to invest and the different companies it details However, the commentary by Jason Zweig draws from the fundamental messages behind the book to provide up to date advice on how to invest Undoubtedly, Benjamin Graham provided the foundation for the commentary with his book, but I personally found Zweig s portions easier to read and relate to.I d recommend The Random Walk Guide to Investing Ten Rules for Financial Success for a simpler, straight forward alternative to this book It s not that I wouldn t advise anyone to read The Intelligent Investor, it s just that if you don t have the time to plod your way through Graham s outdated details, either skip straight to the commentary, or check out Malkiel s book You won t go wrong either way, and you definitely won t go wrong if you want to try and read this thing in its entirety It was just difficult for me to do so.


  8. says:

    I saw that Benjamin Graham was Buffet s professor at Columbia and one of his closest friends In fact Buffet named one of his kids after Graham The Intelligent Investor teaches the philosophy that Buffet learned at school and went on to find massive success with It does not teach people to ride market waves or speculate Instead it instructs those who follow its teachings to calculate the intrinsic value of companies, find the ones that are either under priced or successful, but proven to have long term proven success capabilities, and then create a portfolio with those.The defensive investor does this, then puts new money in every month and checks on the ratios of his her portfolio ever quarter or six months to make sure its still balanced hypothetically lets say 60% stocks 40% bonds this reduces drifting and ensures long term revenue, even if it s not the absolute highest one can earn it s still consistent and positive Because their choices were made based on intrinsic value and not market prices, these companies are good long term investments and the investor doesnt have to sell and buy new ones constantly It s also suggested to have companies spanning all sectors to reduce risk by diversifying.


  9. says:

    To be honest, I have never seen such a terrible book I just can t imagine that this book worth nearly 22 Actually, it is too expensive for me to afford this book because it cost me almost all my pocket money But it doesn t worth such much money When I am reading this book, I can t see anything about investing I even don t believe the author can speak English There are so many stupid mistakes like spelling mistakes and grammar mistakes And through the articles that Benjamin Graham wrote, I can t imagine that he is the father if value investing There is little doubt that this book is just rubbish And nobody can invest well if they read this book This book is just rubbish and the author is really stupid I really want to throw this stupid book away and burn all the books that this author wrote.


  10. says:

    Warren Buffet calls out, this is by far the best book on investing ever written rest other testimonials are just reiterations P.S Not for traders.P.P.S Don t forget to read Jason Zweig s commentary after each chapter to get the current context Most of the times, those help to understand the original text much better.


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