“The Definitive Book On Value Investing”
The original publication date of “The Intelligent Investor” was in 1949, so the commentary added to each chapter by Jason Zweig in the revised addition is invaluable. The book provides the necessary tools to become a successful investor, and encourages clearly laid out principals that shield new investors from bad habits. Due to Benjamin Graham’s clear expertise on the subject and Warren Buffet’s stamp of approval, “The Intelligent Investor” is a must read for those interested in investing, or have even a cursory interest in finance .
It is difficult to summarize this book without reiterating everything stated within word for word, because there is minimal fluff. To boil down Graham’s thoughts to more concise points would be a disservice to the message of the book, so at best I can only provide a few takeaways and the investing strategies I would like to see myself practice if I were as disciplined as Graham encourages.
Being a defensive investor is being a smart investor.
Slow and steady wins the race.
Ignore short term fluctuation, and look at the long term to make informed decisions.
Minimize risk and dollar cost average when you are entering the market.
Shield yourself from reacting emotionally by diversifying your investments and reducing your losses as much as possible.
Be wary of new fads, and evaluate if an investment can be acquired at a good value. The book goes into detail on how to determine is a stock is over valued or is a good price, so if you follow closely you should be able to break away from the flock and avoid the pitfalls that trick you into buying high and selling low like so many others.
If a stock that you’ve researched and trust is short term performing at a loss, why not consider it to be on sale and enjoy that you receive more when you continue to dollar cost average?
“The Intelligent Investor” sits solidly at top of must read finance books. Every chapter covers an important aspect of investing, each explained in depth with the back-up of charts and data. Taking the time to learn what this book promotes is definitely within the best interest of your financial future.