The Intelligent Investor

The Intelligent Investor PDF ebook is one of the must-have best-sellers on the virtual bookshelf for anyone who wants to use the power of the stock market wisely to multiply their capital. Becoming, over the decades since its first edition in 1949, the true bible of the stock market, Benjamin Graham's classic provides the reader with an efficient investment method based on the comparison of prices and the real value of stocks.

The book examines the fundamental differences between investing and speculation; describes two types of investors - active and passive - and the features of the investment strategies of each of them. The book is of interest to a wide range of readers. It can be a reference for both individual and professional investors. It is especially useful for students, graduate students and teachers, as it offers a generalized, systematic look at the trends that have developed in the stock market for decades.

About the author of this book

If you've never heard of such a famous person as Benjamin Graham by investing, then you have missed a lot! Below in the article, I propose to learn a little more about the personality of this ingenious investor.

Graham is one of the most famous investors on our planet at the end of the twentieth century. This person is the author of the theory of value investing.

Value investing, in simple terms, is the purchase of a company's securities (shares) at a price that is lower than their real value. Already a professional stock market participant, Benjamin Graham was looking for patterns in price fluctuations in the stock market and was able to discover a large number of analysis tools that investors use even today!

The author of the book has always taught society to distinguish investments from speculative transactions, and also developed the very principles of value investing, which he describes in detail in the book "The Reasonable Investor".

Important! It is worth noting a very important point that Benjamin Graham's further students, who actively apply his theory in their own practice, are many famous economists and investment gurus, including the notorious Warren Buffett! With the help of Graham's theory, his students managed to earn colossal money in the stock market - billions of dollars!

The Intelligent Investor - summary

Probably, the main message of the book lies in its very title. In more detail, the investor, first of all, is obliged to make financial decisions, relying solely on his own mind, and not on emotions. And this does not mean that in order to become an effective investor, you must be smart, it is important to be smart!

 

The book consists of 20 chapters and is written in simple enough words for any reader. Each chapter sequentially describes the principles of wise investment, with the help of which a future or present investor should use when making certain decisions in the financial markets.

The book "The Intelligent Investor" in many ways combines the very practice of investing, which is so important for both the experienced investor and the newbie in the field of investment taking their first steps! After reading the book, you will be able to learn how to make smart transactions in the stock market! The most important fact in this book is the description of a clear and reasonable approach to investment.

But do not hope that the author of the book, whom we mentioned earlier, will teach you how to get rich quickly, he will give you valuable knowledge on how to preserve your capital in the stock market and create reliable sources of passive income with which you can live confidently in the future. !

Below I will summarize the key principles of smart investing, detailed in the book The Smart Investor:

  • No matter how attractive a stock (security) may seem, you should never overpay for it;
  • You should definitely treat a stock as a share of ownership in a business (as a shareholder of a company in which you invested money), and not as an ordinary security that can bring income;
  • The price of a share in the future will definitely depend on the price of this share today. The higher the value of the stock you buy today, the less profit you will get from it in the future;
  • Be sure to keep your emotions in check. Most investors suffer losses not because they are not smart enough, but because they could not cope with their own emotions when buying / selling shares. The intelligent investor is the lucky person who sells shares to the optimists and buys them from the pessimists.

 

Dear reader, I really hope that this book was able to interest you and you will definitely read it soon! My advice is that you should not delay reading the book "The Reasonable Investor", since the ingenious author has invested in it all the experience and deepest knowledge concerning the sphere of investments and the stock market in general!