Should I read the Intelligent Investor as a beginner?
The Intelligent Investor is a great book for beginners, especially since it's been continually updated and revised since its original publication in 1949. It's considered a must-have for new investors who are trying to figure out the basics of how the market works. The book is written with long-term investors in mind.
Despite not understanding half of the book, the other half seemed excellent. The parts where Graham explains things is clear and easily understandable for someone with as little knowledge as me to understand.
Though written in 1934, it remains a valuable resource today. It should be noted, however, that “Security Analysis” is a more technical book than “The Intelligent Investor.” Those unfamiliar with stock evaluation should read “The Intelligent Investor” first and then, if interested, proceed to “Security Analysis.”
- Basics of accounting/financial statements.
- Understanding the definition of various security types (e.g. stock, bonds, options, warrant, etc)
- Being able to think about what makes some businesses better than others.
1. Security Analysis. Anyone serious about reading Benjamin Graham books needs to read Security Analysis co-authored with David Dodd, Graham's first book. With the serious investor in mind, Graham defined value investing and all the concepts within it.
Most readers will recognize The Intelligent Investor as the book Warren Buffett recommends to value investors. It was written by Buffett's mentor, Benjamin Graham, in 1949. It also remains one of the most acclaimed investing books to this day, teaching investors how to construct a portfolio while minimizing risk.
The sentiment of the book was echoed by Graham disciples such as Irving Kahn and Walter Schloss. Warren Buffett read the book at age 20 and began using value investing as taught by Graham to build his own investment portfolio.
Synopsis. This book will not teach you how to beat the market. However, it will teach you how to reduce risk, protect your capital from loss and reliably generate sustainable returns over the long run. Warren Buffett calls the Intelligent Investor ""by far the best book on investing ever written.
Reading The Intelligent Investor typically takes around 15 hours. The Blinkist summary can be read in just 15 minutes.
Graham says to stay within the range of 25/75 to 75/25: We have suggested as a fundamental guiding rule that the investor should never have less than 25% or more than 75% of his funds in common stocks, with a consequent inverse range of between 75% and 25% in bonds.
Which is the most important chapter in intelligent investor?
Chapter 8 deserves its own section. It, along with Chapter 20, contains one of the most famous and long-lasting ideas from The Intelligent Investor. In Chapter 8, Graham provides a thought-provoking parable.
“Chapters 8 and 20 have been the bedrock of my investing activities for more than 60 years,” he says.
Among the investment strategies that the beginning investor should understand fully are active versus passive investing, value versus growth investing, and income-oriented versus gains-oriented investing. While savvy investment managers can beat the market, very few do it consistently over the long term.
Yes, Benjamin Graham is still relevant. The reason why mostly comes from how timeless his principles are.
Security Analysis is not for the amateur or newbie investor wanna be.
The classic bestseller by Benjamin Graham, perhaps the greatest investment adviser of the Twentieth Century, The Intelligent Investor has taught and inspired hundreds of thousands of people worldwide. Since its original publication in 1949, Benjamin Graham's book has remained the most respected guide to investing.
The Intelligent Investor remains one of the must-reads, especially for anyone interested in being an active investor or picking stocks. The book contains many concepts we discussed during this post that are important to your future success as an investor.
There's an oldie but a goodie that's still rocking the world of finance: “The Intelligent Investor” by Benjamin Graham. Yup, you heard that right, the book was written way back in 1949, but it's still considered a classic in the world of investing.
The second is a less common 1949 edition, reprinted in 2005, featuring a foreword by John Bogle. Both editions of The Intelligent Investor offer valuable insights, but the revised edition with Zweig's commentary remains the most popular and relevant for contemporary readers.
"The Warren Buffett Way," by Robert G.
Market (an imaginary, emotional investor devised by Benjamin Graham, Buffett's mentor), along with many others. It is a great book for investors just starting out, and it continues to be a good read even when you think you know what you're doing.
What did Bill Gates learn from Warren Buffett?
“I've learned many things from Warren over the last 25 years, but maybe the most important thing is what friendship is all about,” Gates wrote in a 2016 blog post. “Even though he keeps up a hectic schedule, Warren still finds time to nurture friendships like few other people I know,” Gates added.
Originally Answered: What did you learn from the book "The Intelligent Investor"? The two key ideas in the Intelligent Investor were: Margin of Safety. The idea that, just like in engineering, you want to allow yourself plenty of room to be wrong.
- Principle #1: Always Invest with a Margin of Safety.
- Principle #2: Expect Volatility and Profit from It.
- Principle #3: Know What Kind of Investor You Are.
- Speculator Versus Investor.
- Frequently Asked Questions.
- The Bottom Line.
Benjamin Graham, often hailed as “the father of value investing,” was born on May 9, 1894, in London, England, and his family moved to New York City when he was just a year old. His father died as a youngster, and the family faced financial hardships.
The real secret to successful investing is that if you keep the simple high-return/high-risk rule in mind, you will never go wrong. If you are investing in anything other than a safe inflation-protected bond there is a chance you will lose money.
