The Intelligent Investor

The Intelligent Investor

Background

The Intelligent Investor is a legendary item in the world of investment. Benjamin Graham discussed how to be an intelligent investor by arguing with so called best practice and methods provide by some so called professionals.

Setting

The time was around 1949. There are tonnes of research and knowledge on how to make smart investment. However, those researches were oversimplified and not really helping investors to understand what value they should get.

Theme

The book first off identifies investment and speculation. Coming along describing relationship between investor and inflation. Then, it discusses portfolio policy for defensive investor and enterprising investor. Exploring market fluctuations and real use of earnings per share. Finally, it walks through stock selection and emphasizes margin of safety.

Genre

The book is classified as Investment in my blog. This book is legendary.

Authors

Benjamin Graham (1894-1976), the father of value investing, has been an inspiration for many of today’s most successful business people. He is also the author of Securities Analysis and The Interpretation of Financial Statements. Bill McGowan is the founder and CEO of Clarity Media Group. A two-time Emmy Award-winning correspondent, McGowan has conducted hundreds of interviews with newsmakers, CEOs, celebrities, authors, editors, attorneys, and athletes. McGowan now uses that experience to coach and train everyone from corporate CEOs to celebrities such as New York Giants quarterback Eli Manning, the actress Katherine Heigl, and the jazz great Wynton Marsalis. He also speaks regularly to large corporate audiences at such companies as Credit Suisse, Conde Nast, and Campbell’s. Alisa Bowman has collaborated on seven New York Times bestselling books. Her articles have appeared in Prevention, Family Circle, , and many other national magazines.

Review

Personally, I am a man very into investment. However, I don’t have a strong background in finance or accounting. So, I am so keen to read books about investment.

I buy this book, “The Intelligent Investor”, because it is one of the books recommended by Warren Buffett. On top of that, one of my investment banker friend highly recommends me to read it before buying any stock. Hence, it is now in my collection.

This book is a very interesting book. It helps you to distinguish the difference between investment and speculator. Besides that, it sharpen your mindset to a new level, to be a value investor. It gives you a framework on how to set up your investment portfolio and a rough idea on how to pick your securities. It works well if you also read “Security Analysis” because the book goes through how to pick a security with an in-deep analysis.

Both of them are essential reads if you want to be a value investor.

If you have any question, feel free to email me at admin@stanleyip.com. I will try my best to answer your.

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