The Intelligent Investor

Description

KEY TAKEAWAYS

1.Economist Benjamin Graham, best known for his book The Intelligent Investor, is lauded as a top guru of finance and investment.

2.Known as the father of value investing, The Intelligent Investor: The Definitive Book on Value Investing is considered one of the most important books on the topic.

3.Graham’s method advises investors to concentrate on the real-life performance of their companies and the dividends they receive, rather than paying attention to the changing sentiments of the market.

4.Graham also advocated for an investing approach that provides a margin of safety—or room for human error—for the investor.

5.Most importantly, investors should look for price-value discrepancies—when the market price of a stock is less than its intrinsic value.

The Intelligent Investor shows us how important it is to go through businesses and companies with a fine-tooth comb. Graham’s precise and accurate analysis shows us how to make money without taking enormous risks. There’s a misapprehension that trading and investing should be risky, and that you have to be over-confident and bolshy about how you invest, but Graham asserts that this isn’t the case. Being an intelligent investor is about being calculated and informed and insisting on having a margin of safety.