REVIEW The Intelligent Investor The Definitive Book on Value Investing A Book of Practical Counsel 109

REVIEW ☆ E-book, or Kindle E-pub Ï Benjamin Graham

REVIEW ☆ E-book, or Kindle E-pub Ï Benjamin Graham Investor The PDFEPUB #190 More than one million hardcovers soldNow available for the first time in paperbackThe Classic Text Annotated to Update Graham's Timeless Wisdom for Today's Market ConditionsThe greatest investment advisor of the twentieth century Benjamin Graham taught and inspired people worldwide Graham's philosophy of value investing which shields investors from substantial error The Intelligent ePUB #8608 a. Benjamin Graham’s last line in The Intelligent Investor sums up the entire book in his trade mark common sense way “ To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks”First published in 1949 this version that I read was re published in 2005 with a forward written by John Bogle who started Vangard Mutual Fund Bogle’s forward serves as a very good summary of The Intelligent Investor highlighting key points clearly So I found it useful to read the forward again after finishing the book as a uick refresh of its contentGraham’s language may be a bit old fashioned so some may find his writing style takes a little bit of getting used to However once I got my pace of reading going I find the old fashion style gives me a sense of comfort and assurance – as if a grandfather was sharing all his valuable experience with me Certainly good things stand the test of time just as sound values “Sound investment principles generally produced sound investment resultswe must act on the assumption that they would continue to do so”Graham is very clear form the start that he is not writing for speculators but for the layman who wants to have a sound approach to grow his weath steadily He believes that lay investors can achieve “a creditable if unspectacular result with a minimum of effort and capabilitysince anyone – by just buying and holding a representative list – can eual the performance of the market averages”He warned those who tries to beat the market as many smart people have tied to do this and failed How he explained this makes a lot of sense to me every stock market broker thinks he can outdo the market That means the stock market experts as a whole is trying to beat itself – a logical contradiction They just cancel each other outThus one should not rely on a financial advisor who promises the sky and raise your hopes that he can do better that the market average That claims Graham is not possible“The real money in investing will have to be made as most of it has been in the past not out of buying and selling but out of owning and holding securities receiving interest and dividends and benefiting form their longer term increase in value”Graham chastises average investors for their sloth and ignorance for willingly giving up their responsibility and rights as business owners to management This he feels is due to the institutionalisation of financial services which has left investors a step removed from ownershipHe disagrees with the commonly held view that “If you don’t like the management sell the stock” He feels this does nothing to improve bad management only puts down the price of the stock and shifts the ownership to someone else “Investors as a whole seem to have abandoned all claim to control over the paid superintendents of their property”Ultimately it is important for investors to give themselves a margin of safety by buying a stock at a price that is lower that its appraised value and to diversify the portfolio These would put the investors in good stead as against speculatorsI like this book It does not give you many formulas for security analysis Graham says you can read further in his earlier book Security Analysis What The Intelligent Investor does is that it lays the foundation for laymen by giving a sound approach to investment written with common sense and simplicity

CHARACTERS The Intelligent Investor The Definitive Book on Value Investing A Book of Practical Counsel

REVIEW The Intelligent Investor The Definitive Book on Value Investing A Book of Practical Counsel 109 é ❮Download❯ ➽ The Intelligent Investor The Definitive Book on Value Investing A Book of Practical Counsel ➸ Author Benjamin Graham – Nd teaches them to develop long term strategies has made The Intelligent Investor the stock market bible ever since its original publication in Over the years market developments have proven the wisdom of Graham's strategies While preserving the integrity of Graham's original text this revised edition includes updated commentary by noted Intelligent Investor The Epub #219 financial journalist Jason Zweig whose perspecti. I had high expectations from the book which it failed to meet But then this book is too old to have a lot of relevance nowThe essence is that an intelligent investor is one who doesn’t think of this as gambling Do solid fundamental ualitative analysis rather than looking at charts Know what the company stands for And you can’t beat the market Maybe if you know nothing about the stock market then this book is for you to get an idea of what you are getting into and what to expect The first 10 chapters were a drag They should’ve been 10 pages max with examples This is the content in it’s entirety No one can beat the market consistently Dollar cost averaging Invest the same number of dollars in stocks each month This way you buy when cheap and less when expensive You cannot beat the market even if you are an active investor Think long term index funds ualitative analysis over speculation Diversify Look for large companies with dividends Buy cheap sell high and NOT vice versa most people get this wrong purchase of bargain issues invest in closed end fundsCouldn’t go through the last 3 4 chapters since I ran out of patience Some notes from chapter 11 16Estimating value of a stockfuture earningsgeneral long term prospectsmanagement in the companyfinancial strength and capital structuredividend recordearning852growth rateEarnings per sharebeware of tricky caveats intended to bump earningslearn how to see fishy stuff in earningsread backwards read read the footnotes of earnings reportThings to look at in a companyProfitabilityStabilityGrowthFinancial PositionDividendsPrice HistorySeven statistical reuirements for inclusion in a defensive investor’s portfolio Adeuate size A sufficiently strong financial condition For industrial companies current assets should be at least twice current liabilities—a so called two to one current ratio Also long term debt should not exceed the net current assets or “working capital” For public utilities the debt should not exceed twice the stock euity at book valueContinued dividends for at least the past 20 years No earnings deficit in the past ten years Ten year growth of at least one third in per share earnings Price of stock no than 11⁄2 times net asset value Price no than 15 times average earnings of the past three years

Benjamin Graham Ï 9 REVIEW

The Intelligent Investor The Definitive Book on Value Investing A Book of Practical CounselVe incorporates the realities of today's market draws parallels between Graham's examples and today's financial headlines and gives readers a thorough understanding of how to apply Graham's principlesVital and indispensable this HarperBusiness Essentials edition of The Intelligent Investor is the most important book you will ever Intelligent Investor The Definitive Book PDFEPUB or read on how to reach your financial goa. I saw that Benjamin Graham was Buffet's professor at Columbia and one of his closest friends In fact Buffet named one of his kids after Graham The Intelligent Investor teaches the philosophy that Buffet learned at school and went on to find massive success with It does not teach people to ride market waves or speculate Instead it instructs those who follow its teachings to calculate the intrinsic value of companies find the ones that are either under priced or successful but proven to have long term proven success capabilities and then create a portfolio with thoseThe defensive investor does this then puts new money in every month and checks on the ratios of hisher portfolio ever uarter or six months to make sure its still balanced hypothetically lets say 60% stocks 40% bonds this reduces drifting and ensures long term revenue even if it's not the absolute highest one can earn it's still consistent and positive Because their choices were made based on intrinsic value and not market prices these companies are good long term investments and the investor doesnt have to sell and buy new ones constantly It's also suggested to have companies spanning all sectors to reduce risk by diversifying