The Intelligent Investor
This book covers all the classical investment practices any stakeholder needs to know. It has been known by many as the “Stock Market Investing Bible” since it was first published in 1949. This book analyzes the difference between “investment” and “speculation,” and discusses how investors respond to market fluctuations. It also introduces the core idea of value investing, “margin of safety,” and what strategies defensive and enterprising investors should use.
Author : Benjamin Graham
Benjamin Graham, an American economist and investment guru, is the founder of value investing theory. He is known as “the Dean of Wall Street” and “the Father of Modern Security Analysis”. Graham was not only Warren Buffett’s research supervisor at Columbia University’s Business School, but he was also regarded by Buffett as his “spiritual mentor.”
Overview | Chapter 1
Hi, welcome to Bookey. Today, we will unlock the book The Intelligent Investor.
When it comes to stock investment, most people’s first reaction will be to think of Warren Buffett, the “Oracle of Omaha.” The book we’re reading today is written by Benjamin Graham, whom Buffett,referred to as his “mentor for life.”
When unlocking Buffett: The Making of an American Capitalist and The Snowball: Warren Buffett and the Business of Life, we mentioned that Buffet read The Intelligent Investor in 1950 when he was 19 years old. The book struck him immediately. Not long after, Buffett enrolled in Columbia University’s Business School, where he studied value investing, with Graham as his mentor. Three years after graduation, Buffett got a job at Graham’s company, and during his first two years there, Buffett learned about value investing strategies and grew his wealth from $9,800 to $174,000.
When Buffett read The Intelligent Investor again in 1972, he said, “I read the first edition of this book early in 1950, when I was nineteen. I thought then that it was by far the best book about investing ever written. I still think it is.”
Since its initial publication in 1949, the book has been regarded as a world-renowned classic in investment practices. It has been considered a revolutionary text often referred to as the “Stock Market Investing Bible” by investment gurus such as Warren Buffett. Buffett even wrote the preface and commentary for the book. It’s been 40 years since the fourth edition of this book was published, and you may be wondering if the investment strategies mentioned in the book still hold true today. In fact, Graham himself emphasized in the introduction that the book focuses more on the principles of investing and the attitudes of investors. Therefore, we can still learn a lot today from this perspective.
Benjamin Graham, an American economist and investment thinker, is the founder of value investing theory. He is known as “the Dean of Wall Street” and “the Father of Modern Security Analysis”. Graham was not only Warren Buffett’s research supervisor at Columbia University’s Business School, but also regarded by Buffett as his “spiritual mentor” throughout his life. His security analysis theory and knowledge of the field was a tremendous shock to the investment field, affecting almost three generations of the biggest fund managers on Wall Street.
Next, we will unlock the book for you from three areas:
First, the fundamentals of value investing;
Second, investment suggestions for defensive investors;
Last, investment suggestions for enterprising investors.