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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
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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"

What do intelligent speculators and investors do?
The intelligent investor and inflation
What are the characteristics of a defensive investor?
Who is the enterprising investor and what is their strategy?
How should an intelligent investor behave towards fluctuations?
Mr. Market: The Parable of Value Investing
Intelligent investors and advisors
Why is the intelligent investor lay?
How to evaluate convertible bonds
Shareholders must have an active role in the company
The " margin of safety"
What is the right purchase price to pay?
The intelligent investor diversifies
Take-home message

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