The Intelligent Investor: The Classic Text on Value Investing

Review The Intelligent Investor: The Classic Text on Value Investing

by BENJAMIN GRAHAM

About the book

As one of the early classics of finance and investing books, Benjamin Graham shares his philosophy on “value investing” and how to make it successful. In his philosophy, he teaches investors how to develop long-term strategies and to avoid a substantial error. In this new edition, Graham’s original content is followed by a commentary by Jason Zweig with an incorporation of the ideas into the modern investing industry. This book has established Graham as one of the most important investing teachers of all time.

It can be easily determined that Graham was one of the investing pioneers of his time, with his innovative approach to investing. This has established him as the father of value investing. The content of the book was specifically centered on the face of the industry in Graham’s time, which was far from how investing and the stock market works now. Following that, the book seems to be outdated when applied to the modern market. Zweig’s commentary did little to incorporate Graham’s ideas into the modern investing industry, as firstly, the original content relied on the industry of Graham’s time.

It still remains as one of the most important investment books of all time, as it was the pioneer of many investing books that followed. Overall, the reader can still get insight from Graham’s philosophy on value investing and apply it to his or her take on investing. 

About the Author

BENJAMIN GRAHAM (1894-1976) was considered as the father of value investing. He was an economist, investor, and professor. He continues to be an inspiration for many successful business people. 

Table of Contents

PART 1 GENERAL APPROACHES TO INVESTMENT

1. What the Intelligent Investor Can Accomplish
2. The Investor and Stock-Market Fluctuations
3. The Investor and His Advisers
4. General Portfolio Policy: The Defensive Investor
5. Portfolio Policy for the Aggressive Investor: Negative Approach
6. Portfolio Policy for the Enterprising Investor: The Positive Side

PART II PRINCIPLES OF SECURITY SELECTION

1. United States Savings Bonds: A Boon to Investors
2. Security Analysis for the Lay Investor: General Approach
3. Stock selection for the Defensive Investor
4. Stock Selection for the Enterprising Investor: The Appraisal Method
5. Detection of Undervalued Issues by Security Analysis: Three Examples
6. The Pattern of Change in Stock Earnings and Stock Prices
7. Group Studies of Earnings and Price Developments

PART III THE INVESTOR AS BUSINESS OWNER

1. Stockholders and Managements
2. A Study of Stockholder-Management Relations in Two Industries

PART IV CONCLUSION

1. “Margin of Safety” as the Central Concept of Investment

Appendix: Buying and Selling by “Central Value” Method

Index

About Benjamin Graham

About John C. Bogle

Posted by Anastasia