What does the intelligent investor teach you? (2024)

What does the intelligent investor teach you?

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.

Make investments objectively

To quote his observation from the book — “People who invest make money for themselves; people who speculate make money for their brokers.” Speculation carries a high degree of risk, and consequently, the possibility and the quantity of loss are higher.

What is the main message of The Intelligent Investor? The main message of The Intelligent Investor is to invest with a long-term perspective and focus on value investing.

The Intelligent Investor also advises investors to hold a portfolio of 50% stocks and 50% bonds or cash, to be the pitfalls of day trading, to take advantage of market fluctuations and market volatility, to avoid buying stocks simply when they are fashionable, and to look out for ways that companies may be manipulating ...

The intelligent investor will never exit a stock position purely in response to share price movement. He / she will always first ask whether the value of the company's underlying businesses has changed and then react accordingly. The intelligent investor only pays attention to the current stock price when it suits him.

Warren Buffett started investing at 11 and experimented with various strategies until he read "The Intelligent Investor" by Ben Graham in 1949. Graham's book provided Warren with a philosophical framework for investing and taught the most important principles.

What makes Intelligent Investor one of the best investing books for beginners is that he talks at length about how to focus on the long-term health of a company or holding as a way to limit your risk. Again, the idea is focusing on a long-term wealth building strategy and not chasing after short-term gains.

The intelligent investor is a realist who sells to optimists and buys from pessimists. Those who do not remember the past are condemned to repeat it. An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.

Learn the basic terminologies of share market and bond market before reading Intelligent Investor. Benjamin Graham coined Mr. Market and Margin of safety . Chapter 1,8,20 are most important.

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.

Is The Intelligent Investor Worth Reading in 2023?

The Intelligent Investor

It also remains one of the most acclaimed investing books to this day, teaching investors how to construct a portfolio while minimizing risk.

Chapter 8 - 'The Investor and Market Fluctuations'

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.

Even with all the fancy new investing tools and technologies we have today, this book is still considered a must-read for anyone interested in the stock market. It's like the OG of investing books — the original gangster.

The Intelligent Investor by Benjamin Graham is considered by many as the definitive guide to value investing. The book is filled with a wealth of knowledge, but two chapters in particular, Chapter 8 and Chapter 20, provide indispensable insights that any investor, whether seasoned or novice, can benefit from.

Graham pushed the idea of buying stocks at a discount from their intrinsic value. He named the discount the "margin of safety" and considered it an important protective measure. If the stock were already undervalued, it would be less likely to experience major declines.

He's consistently put Buffett's advice on friendship at the top of that list. “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.

Yes, The Intelligent Investor by Benjamin Graham is still considered a classic and relevant book on investing. It was first published in 1949 and has been updated several times.

Bill Gates says Warren Buffett taught him to value free time: Filling 'every minute of your schedule' doesn't make you more serious. US philantropist Bill Gates speaks during the Global Fund Seventh Replenishment Conference in New York on September 21, 2022.

Warren Buffett is widely considered the greatest investor in the world. Born in 1930 in Omaha, Nebraska, Buffett began investing at a young age and became the chairman and CEO of Berkshire Hathaway, one of the world's largest and most successful investment firms.

How old is the average investor?

For the self-proclaimed lazy investor, index funds are an excellent place to start. They eliminate the need for continuous market monitoring or financial wizardry to try and beat the market, a task even seasoned fund managers struggle with. Instead, index funds allow you to take a more passive approach to investing.

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.”

The average reader will spend 10 hours and 40 minutes reading this book at 250 WPM (words per minute).

High-IQ investors' exceptional stock picks and lower trading costs contribute to the 2.2% per year spread between the portfolio returns of high- and low-IQ investors.