The Intelligent Investor: Book Review
If you are in anyway connected to the stock market — as an investor or you wish to invest — The Intelligent Investor by Benjamin Graham should be your next purchase. Benjamin Graham wrote the book in 1949, but still provides answers to every stock market problem possible. No wonder one of the wealthiest persons in the world, Warren Buffett, continues to follow it like a kid chasing a balloon.
Warren Buffett also commented in the 2006 revised edition of the book: “This book is by far the best book on investing ever written.” He also admitted that it helped him in developing a conceptual framework for his future investments and capital allocations.
Not just Warren Buffet, the book has helped millions of investors to succeed in the sophisticated game we call ‘The Stock Market.’ Even though it is based on The Wall Street, the knowledge and ideas mentioned by Benjamin Graham apply to every stock market scenario, irrespective of your location and trade center.
What’s the book about?
The book dives into numerous stock market strategies such as asset allocation, portfolio policy, dividends, market fluctuation, inflation, diversification and the holy grail of all the strategies: Graham’s Margin of Safety. It is number-heavy and data rich, but when looked at from an investor’s perspective, it is nothing short of a dream. It bestows trading knowledge by depicting examples reaching back as far as 1871.
The first few chapters of the book are dedicated to the general concepts of the stock market. Amateur investors learn the most from these chapters. It covers the basic outlay of what the stock market is all about and how you should approach it. Once you have found the best way to approach the market, the next few chapters describe the methods to analyze companies and stocks and how they should be chosen for a profit soaked successful stock market run. Bundled with case studies, you will feel like a professional turning the pages.
Should you buy it?
The question should be: How soon can you buy it?
Beyond a shadow of a doubt, the last chapter of The Intelligent Investor is the singularity of the whole book. For anyone wanting to be successful in the stock market, the last chapter is definitely worth a read. Here, Graham describes the concept of the Margin of Safety, his brainchild and the single strategy that lets investors like Warren Buffett absolutely slaughter the market.
Imagine a book about the stock market and multiply it with infinite knowledge of wisdom and experience, that’s the essence of The Intelligent Investor. Not only does it provides a foundation to achieve financial independence, but it also teaches you to be smart, focused, hardworking and patient: the ingredients in the money making dish called Value Investing.
And if you are not yet convinced, here is Warren Buffet for convincing you: “Chapters 8 and 20 have been the bedrock of my investing activities for more than 60 years. I suggest that all investors read those chapters and reread them every time the market has been especially strong or weak.”
For the infinite money making opportunities stock market provides, and to find the best way to grab them, give The Intelligent Investor a read.
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Originally published at https://thewiseidiot.in on September 14, 2018.
