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The Intelligent Investor
640 pages, 2006
This classic text is 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 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, this Harpe Business Essential's edition of The Intelligent Investor is the most important book you will ever read on how to reach your financial goals.
Benjamin Graham makes a clear distinction between investing and speculating. He suggests that investing is about minimizing risk to generate steady returns, while speculating is about taking on high risk in the hope of high returns. It's important to know which one you're doing.
Graham introduces the concept of 'Margin of Safety'. This means you should only invest in a stock when it is priced significantly below its intrinsic value. This way, even if things go wrong, you're less likely to lose your money.
The book introduces us to 'Mr. Market', a character who offers to buy or sell stocks every day. Some days he's overly optimistic, other days he's overly pessimistic. Graham advises not to be swayed by Mr. Market's moods, but to use his mood swings to your advantage.
Graham emphasizes the importance of doing your own research before investing. Don't just rely on tips or trends. Look into the company's financial health, its business model, and its competition. Make informed decisions.
The Intelligent Investor encourages a long-term approach to investing. Short-term market fluctuations are unpredictable and trying to time the market is futile. Instead, focus on buying quality stocks at a good price and hold onto them for the long term.
Quotes 5
By far the best book on investing ever written.
Warren Buffett - Successful InvestorIt is the roadmap for investing that I have now been following for 57 years.
Bill Ackman - Hedge Fund ManagerThe Intelligent Investor is a realist who sells to optimists and buys from pessimists.
Joel Greenblatt - Value InvestorThe Intelligent Investor changed my life.
Charlie Munger - Berkshire Hathaway Vice-ChairmanThe Intelligent Investor is the best book about investing. It is by far the most respected.
John Bogle - Vanguard Group Founder
The Intelligent Investor found in libraries
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