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The Intelligent Investor Information
|The Intelligent Investor
|The Psychology of Money (ePUB/PDF) By Morgan Housel
Over one million hardback copies have been sold.
The paperback edition of the product is now accessible for the first time.
The present work aims to provide an updated and annotated version of the classic text authored by Graham, with the objective of applying his timeless wisdom to the contemporary market conditions.
Benjamin Graham, widely regarded as the most influential investment counsellor of the twentieth century, imparted his teachings and served as a source of inspiration for individuals across the globe. Graham’s idea of “value investing,” which offers protection against significant errors and instructs investors on the formulation of long-term plans, has established The Intelligent Investor as a revered guide in the realm of stock market literature since its initial release in 1949.
Over the course of time, the evolution of the market has demonstrated the soundness of Graham’s strategies. This revised edition of Graham’s original text maintains its authenticity while incorporating updated commentary by Jason Zweig, a renowned financial journalist. Zweig’s perspective takes into account the current market conditions, establishes connections between Graham’s examples and contemporary financial headlines, and enhances readers’ comprehension of the practical application of Graham’s principles.
The Harper Business Essentials edition of The Intelligent Investor is deemed vital and useful, since it serves as a paramount resource for anyone seeking to achieve their financial objectives.
The Book’s Fundamental Ideas
Graham formed his fundamental ideas by combining his remarkable intellectual abilities with deep common sense and enormous experience. These concepts, which are at least as applicable now as they were throughout Graham’s lifetime, are as follows:
- Astock is not merely a ticker symbol or an electronic blip; rather, it represents an ownership stake in a real firm and has an inherent value that is not contingent on its current share price. • Astock’s value is independent of the current market price of its shares. The stock market is like a pendulum that constantly swings between extremes of optimism and pessimism. Unsustainable optimism drives stock prices higher, while unjustifiable pessimism drives stock prices down. The astute investor is a realist who buys from pessimists and sells to optimists. The clever investor is a realist.
- The current cost of an investment serves as a key variable in determining its potential return. When you pay a greater price, you might expect a less return on your investment.
- The possibility of making a mistake is the one risk that can never be eliminated by an investor, no matter how cautious they are. You may reduce the likelihood of making a mistake by adhering to Graham’s “margin of safety” principle, which states that you should never overpay for an investment, even how exciting it might seem to be.
- Your own capabilities are the key to your own financial success. If you can train yourself to think critically and not blindly accept everything that is presented as a “fact” on Wall Street, and if you invest with patient conviction, you can consistently profit from even the most severe bear markets. You may take control of your financial future and refuse to allow the emotional swings of others dictate it by cultivating your self-discipline and your bravery.
In the end, the performance of your finances is far less important than how you conduct yourself. This new version of Graham’s book, “The Intelligent Investor,” seeks to adapt Graham’s theories to today’s financial markets while preserving the author’s original text in its entirety (with the exception of footnotes that provide more explanation).
You will discover a fresh commentary after each of Graham’s chapters in this book. In these reader’s guides, I’ve included contemporary examples that ought to demonstrate how Graham’s ideas continue to be applicable in today’s world and how freeing they continue to be.
About The Author Benjamin Graham
Benjamin Graham, born on May 8, 1894, and deceased on September 21, 1976, was a prominent economist and skilled investor from the United States. Graham is widely recognised as the initial advocate of value investing, an investment methodology that he commenced instructing at Columbia Business School in 1928.
He further enhanced this approach in collaboration with David Dodd through multiple editions of their renowned publication, Security Analysis. Prominent proponents of value investing including Jean-Marie Eveillard, Warren Buffett, William J. Ruane, Irving Kahn, Hani M. Ankles, and Walter J. Schloss. Warren Buffett, acknowledging Graham’s significant role in shaping his investment philosophy, regards him as the second most influential individual in his life, surpassed only by his own father. Indeed, Graham exerted such a profound influence on his students that two notable individuals, namely Buffett and Kahn, chose to name their sons Howard Graham Buffett and Thomas Graham Kahn, respectively, in homage to him.
The Intelligent Investor Book Summary
The Intelligent Investor is widely regarded as the preeminent book on value investing, often hailed as an unparalleled resource in this field. The book has been authored by Benjamin Graham, who served as Warren Buffett’s professor at Columbia University. Warren Buffett, a highly esteemed investor, provides a personal endorsement and asserts that this book on investment is undoubtedly the finest in its field. According to the individual, stocks represent a form of ownership in a company and are fundamentally distinct from speculative activities such as day trading.
In the first section of the book, Graham provides a delineation between investment and speculation, as per his own classification. Investing entails the objective of capital preservation and the diligent examination of shares to ascertain, to a certain degree, the anticipated returns on the investment. In essence, it is advisable to engage in investment activities solely if one possesses a sense of ease and willingness to retain ownership of the stock in question over an extended period, irrespective of the observed volatility in its market value. This statement encapsulates the fundamental principles of value investing.