Vital and indispensable, this HarperBusiness Essentials edition of The Intelligent Investor is the most important book you’ll ever read on how to achieve your financial goals.
Over the years, the evolution of the market has proven the wisdom of Graham’s strategies. While preserving the integrity of Graham’s original text, this revised edition includes updated commentary by renowned financial journalist Jason Zweig, whose perspective incorporates the realities of today’s marketplace, draws parallels between examples of Graham and today’s financial headlines, and gives readers a deeper understanding of how to apply Graham’s principles.
Benjamin Graham's The Intelligent Investor PDF, first published in 1949, is a widely acclaimed book on value investing. The book teaches readers strategies on how to use value investing successfully in the stock market. Historically, the book was one of the most popular books on investing, and Graham's legacy lives on. The shrewd investor is remarkable today, and many famous investors praise him for helping them determine value in the stock market and successfully selecting stocks for their portfolio. The main analysis of the book focuses on investment, Mr Markt's allegory, and valuation.
The Intelligent Investor PDF
Benjamin Graham (May 8, 1894 - September 21, 1976) was an American economist and professional investor. Graham is considered the first to advocate value investing, an investment approach that he taught at Columbia Business School in 1928 and later perfected with David Dodd through various editions of his famous book Security Analysis. Value investing students include Jean-Marie Eveillard, Warren Buffett, William J. Ruane, Irving Kahn, Hani M. Anklis, and Walter J. Schloss. Buffett, who credits Graham for relying on a strong intellectual investment framework, described him as the second most influential person in his life after his own father. In fact, Graham had such an overwhelming influence on his students that two of them, Buffett and Kahn, named their sons Howard Graham Buffett and Thomas Graham Kahn after him.
He had high expectations of the book, which he did not meet. But of course this book is too old to be relevant now.
The essence is that a smart investor is someone who doesn't see this as a game. Do solid qualitative fundamental analysis instead of looking at charts. Know what the company stands for. And you can't beat the market.
If you may not know anything about the stock market, this book is intended to give you an idea of what to get into and what to expect.
The first 10 chapters of The Intelligent Investor PDF were awesome. There should be a maximum of 10 pages with examples. This is the content in its entirety:
- No one can consistently beat the market.
- Average cost in dollars. Invest the same amount of dollars in stocks every month. That way, you buy more when it's cheap and less when it's expensive.
- You cannot beat the market even if you are an active investor.
- Think of long-term index funds
- Qualitative analysis of speculation
- To diversify. Look for great companies with dividends
- Buy low, sell high, and NOT the other way around (most people are wrong)
- Purchase negotiation problems
- Invest in closed funds
Intelligent Investor PDF
I couldn't go through the last 3-4 chapters because my patience was exhausted.
Some notes from The Intelligent Investor PDF, chapters 11-16:
- Future earnings.
- Long-term overview
- Management in the company
- Financial strength and capital structure
- Dividend record
- Profit * (8.5 + 2 * growth rate)
Earnings per share:
Beware of complicated warnings aimed at increasing profits. Learn to see lazy things in revenue. Read backwards, read more, read the footnotes to the income report.
What you should consider in a company:
- Cost effectiveness
- stability
- increase
- Financial position.
- Dividends
- Price history.
Seven statistical requirements for inclusion in a defensive investor's portfolio:
- Reasonable size.
- A sufficiently solid financial position.
In the case of industrial companies, the current assets must be at least twice the short-term borrowed capital, the so-called 2: 1 short-term ratio. In addition, long-term debt should not exceed working capital (or "working capital"). In the case of public services, the debt must not exceed twice the share capital (at book value). Current dividends for at least the past 20 years.
- In the past ten years there has been no deficit in profits.
- Ten-year growth of at least a third of earnings per share.
- The price of the shares may not exceed 1 1/2 times the net asset value.
- Price no more than 15 times the average income for the past three years.
Benjamin Graham, the greatest investment advisor of the 20th century, taught and inspired people around the world. Graham's “investing in value” philosophy, which protects investors from significant mistakes and teaches them to develop long-term strategies, has made The Intelligent Investor PDF the stock market bible since it was originally published in 1949.
Over the years, market developments have shown the wisdom of Graham's strategies.
