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Learn the key ideas of the book by Benjamin Graham

The Intelligent Investor

Become a successful investor: the winning recipe

Investing in an intelligent way requires self-awareness first of all: how much time and work are you willing to dedicate? The choice between being a passive investor and an active investor depends on this. If you are aware that you want to make a minimum effort, you must focus on a defensive attitude and expect a moderate profit. Those who are ready to dedicate themselves to their portfolios with great commitment, can choose to become enterprising investors. In The Intelligent Investor, Graham has prepared a method capable of protecting the quality of your investment in order to obtain above average results. The path is simple: look back, analyze the data, keep your nerves steady and curb your enthusiasm, buy below the real value and sell when the price exceeds it, establish a margin of safety.

The Intelligent Investor
Read in 14 min.
Listen in 17 min.

Many useful tips to:

  • Invest successfully, and discover that you don’t need a stratospheric IQ: what you need is an intellectual attitude that helps you make decisions and the ability to manage your emotions.
  • Learn the difference between being an active or passive investor and choosing the most appropriate behavior for your preferences.
  • Discover the recipe for financial success: learn to become a critical thinker, trust facts, invest with patience, discipline and courage.

The author of the book:

Benjamin Graham (London, May 9, 1894 - Aix-en-Provence, September 21, 1976) is considered the father of value investing, his innovative ideas have been the basis of his work as a university professor, and as an entrepreneur. The Intelligent Investor (1949), is still considered one of the most important financial investment techniques and is periodically republished, with changes that adapt it to modern times.

IDEA CHIAVE 1/15

What do intelligent speculators and investors do?

Investment and speculation must be kept totally separate, both in your mind and in your portfolio. Just as intelligent investment exists, so does intelligent speculation. It's a matter of choice. What is absolutely wrong, is misunderstanding: to think that you are investing when you are speculating instead.

The intelligent speculator must work by looking forward, anticipating market trends. He must do the opposite of the intelligent investor, who instead bases his analyzes on what does not fluctuate, on what remains constant over time. For this it is necessary to have a satisfactory knowledge of the background of the stock market in which you want to operate.

However, to protect yourself against losses that can be catastrophic, you should never devote more than 10% of your funds to speculation.

  

The key ideas of "The Intelligent Investor"

01.
What do intelligent speculators and investors do?
02.
The intelligent investor and inflation
03.
What are the characteristics of a defensive investor?
04.
Who is the enterprising investor and what is their strategy?
05.
How should an intelligent investor behave towards fluctuations?
06.
Mr. Market: The Parable of Value Investing
07.
Intelligent investors and advisors
08.
Why is the intelligent investor lay?
09.
How to evaluate convertible bonds
10.
Shareholders must have an active role in the company
11.
The " margin of safety"
12.
What is the right purchase price to pay?
13.
The intelligent investor diversifies
14.
Quotes
15.
Take-home message
 
 
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