The Intelligent Investor by Benjamin Graham
After graduating from Columbia University, Graham worked on Wall Street, earning a considerable amount of money over 15 years. But in 1929, with the fall of Wall Street, he, like all shareholders, plunged into recession and lost his property. These experiences taught him to invest in low-risk but profitable companies. In The Intelligent Investor, Benjamin Graham introduces the concept of value investment and conveys the concept of value investment to the reader in relatively simple language.
Introducing the concept of value investing in the summary of The Intelligent Investor
In The Intelligent Investor, Graham, as the author of the book, uses the parable of Mr. Bazaar to simplify the abstract concepts of equity for the general public. In general, Graham teaches investors to approach a stock by considering the hidden value of a stock and reap the fruits of their patience in the long run.
“The most realistic distinction between the investor and the speculator is found in their attitude towards stock-market movements. The speculator’s primary interest lies in anticipating and profiting from market fluctuations. The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices. Market movements are important to him in a practical sense because they alternately create low price levels at which he would be wise to buy and high price levels at which he certainly should refrain from buying and probably would be wise to sell. It is far from certain that the typical investor should regularly hold off buying until low market levels appear, because this may involve a long wait, very likely the loss of income, and the possible missing of investment opportunities. On the whole, it may be better for the investor to do his stock buying whenever he has money to put in stocks, except when the general market level is much higher than can be justified by well-established standards of value. If he wants to be shrewd he can look for the ever-present bargain opportunities in individual securities. ”
About The Intelligent Investor, A Way to Make a Profit at the Lowest Cost
The Intelligent Investor, a book in the genre of economics and business, was first published in 1949 by Benjamin Graham and has since become one of the most important books on value investing. This book teaches the reader strategies by which the reader can easily use-value investment in the stock market. The book The Intelligent Investor, one of the key and most popular value investment books, is today remembered as the main legacy of Benjamin Graham, and great investors today appreciate the teachings of this book and owe their success to the book of the smart investor. The Intelligent Investor is based on Graham Teachings at Columbia University on value investing, which dates back to 1928. Value investing, which is at the heart of this book, is actually a strategy for targeting the stocks of companies that are undervalued but have the potential to make huge profits in the long run. Value investing is a good way to go in the long run and is not affected by daily fluctuations. Many economists and investors still consider this book to be one of the best books on investment, and it is a seal of approval for the depth and impact of this work. The book has sold more than a million copies worldwide, and Fortune magazine writes about it: "If you are going to read only one book about investing in your life, make sure that one book is this book."
About Benjamin Graham Author of The Intelligent Investor
Benjamin Graham is an American author, professor, economist, and investor known as the Father of Value Investment, and has authored two major and fundamental books on investment that are still practical and key texts for investors. The main philosophy of this author in the field of investment is based on the psychology of the investor, the minimum amount of debt, investment with purchase and maintenance and purchase with security. After graduating from Columbia University at the age of 20, Graham started working on Wall Street and later founded his own company, Graham-Newman Partnership. He then taught at Columbia University and the University of California. His work in investment and managerial economics led to a new wave of value investment and nurtured students who achieved remarkable success in the world of investing. Among these students are Irving Kahn and Warren Buffett, who considered Benjamin Graham to be the most influential person in their lives. Graham wrote numerous books and articles throughout his life, including Security Analysis, Storage and Stability, World Commodities and World Currency, and The Intelligent In.