The Intelligent Investor: A Book of Practical Counsel Author: Visit Amazon's Benjamin Graham Page | Language: English | ISBN:
0060155477 | Format: EPUB
The Intelligent Investor: A Book of Practical Counsel Description
Review
"The wider Mr. Graham’s gospel spreads, the more fairly the market will deal with its public." --
Barron'sAbout the Author
Benjamin Graham, the father of value investing, was perhaps the most influential investment figure of all time.His work laid the foundation of modern security analysis, and two of his books,
The Intelligent Investor (1949) and
Security Analysis(1934), are investment classics that remain bestsellers to this day.His Life and work have been inspiration for many of today's most successful investors, including Warren Buffett, Michael F. Price, and John Neff.
- Hardcover: 340 pages
- Publisher: Harper & Row Publishers; 4th Revised edition (January 22, 1986)
- Language: English
- ISBN-10: 0060155477
- ISBN-13: 978-0060155476
- Product Dimensions: 8.4 x 5.8 x 1.3 inches
- Shipping Weight: 1.2 pounds
If you believe - as I have always believed - that the value approach is inherently sound, workable and profitable, then devote yourself to that principle. Stick to it, and don't be led astray by Wall Street's fashions, illusions, and its constant chase after that fast dollar.
Investing is most intelligent when it is most businesslike. After all, you are neither right or wrong when the market disagrees with you. You are right because your data and reasoning are right. True, there is safety in growth and some of us will go as far as to declare that there can be no real safety except in growth. But these sound to me like slogans than scientifically formulated and verified propositions. A case can be made for putting all your growth eggs in the best or relatively few best baskets.
If we assume that it is the habit of the market to overvalue common stocks which have been showing excellent growth or are glamorous for some other reason, it is logical to expect that it will undervalue - relatively, at least - companies that are out of favor because of unsatisfactory developments of a temporary nature. Focus on larger companies, for 2 reasons: First they have the resources in capital and brain power to carry them through adversity and back to a satisfactory earnings base. Second, the market is likely to respond with reasonable speed to any improvement shown.
Let me emphasize that it does not take a genius or even a superior talent to be successful as a value analyst. What it needs is, first, reasonably good intelligence; second, sound principles of operation; third, and most important, firmness of character.
Now, let me close with a few words of counsel from an 80-year-old veteran of many a bull and many a bear market.
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