Four Reasons Why “The Intelligent Investor” Is A Mega Outdated Book
But I would still advise every newbie investor to read it.
The Intelligent Investor is one of the most influential books in the investing world. Its first edition (1949) conveys the teachings of the greatest investment advisor of the 20th century, Benjamin Graham.
The revised edition that came out in 2003 includes updated commentary by the brilliant financial journalist Jason Zweig. He did a great job of incorporating the realities of the stock market 20 years ago.
The book explains the principles of successful value investing. There’s no doubt it has helped many people reach their financial goals.
However, The Intelligent Investor presents outdated investment principles from 73 years ago. They are no longer valid in the automated stock market of the 21st century.
The stock market never stops evolving. It is unreasonable to expect it still works the same way as in 1949.
I often come across absurd misinformation on the stock market based on the teachings from this book. Misinformation leads to investment mistakes, losses, and missed opportunities.
This article explains which principles from The Intelligent Investor still hold, which no…
