Read on Twitter
You should read The Intelligent Investor by Benjamin Graham.
But you probably don't have time.
So here is a
with a running summary as I read and take notes on the book.
But you probably don't have time.
So here is a
with a running summary as I read and take notes on the book.
But why should you read this book?
It's the definitive guide to value investing, the method used famously by Berkshire Hathaway.
Warren Buffett calls it "by far the best book on investing ever written."
It's the definitive guide to value investing, the method used famously by Berkshire Hathaway.
Warren Buffett calls it "by far the best book on investing ever written."
You can buy it here: https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661
Be an investor, not a speculator.
"An investment operation is one which, upon thorough analysis, promises *safety of principal* and an *adequate return*. Operations not meeting these requirements are speculative."
"An investment operation is one which, upon thorough analysis, promises *safety of principal* and an *adequate return*. Operations not meeting these requirements are speculative."
You're the greatest cause of uncertainty for your returns.
"The investor's chief problem—and even his worse enemy—is likely to be himself."
"The investor's chief problem—and even his worse enemy—is likely to be himself."
Character matters more than smarts.
"We have seen much more money made and kept by 'ordinary people' who were temperamentally well suited for the investment process than by those who lacked this quality, even though they had extensive knowledge of finance and accounting."
"We have seen much more money made and kept by 'ordinary people' who were temperamentally well suited for the investment process than by those who lacked this quality, even though they had extensive knowledge of finance and accounting."
Simplicity creates success.
"If you merely try to bring just a little extra knowledge and cleverness to bear upon your investment program, instead of realizing a little better than normal results, you may well find that you have done worse."
"If you merely try to bring just a little extra knowledge and cleverness to bear upon your investment program, instead of realizing a little better than normal results, you may well find that you have done worse."
Stay calm. Stay cool.
"While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster."
"While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster."
Never overpay for a stock.
"The really dreadful losses of the past few years (and on many similar occasions before) were realized in those common-stock issues where the buyer forgot to ask, 'How much?'"
"The really dreadful losses of the past few years (and on many similar occasions before) were realized in those common-stock issues where the buyer forgot to ask, 'How much?'"
What types of stocks should you buy?
"We shall suggest as one of our chief requirements here that our readers limit themselves to stocks selling not far above their tangible asset value."
"We shall suggest as one of our chief requirements here that our readers limit themselves to stocks selling not far above their tangible asset value."
But what about growth stocks?
"While there are many good growth companies worth several times net assets, the buyer of such shares will be too dependent on vagaries and fluctuations of the stock market."
"While there are many good growth companies worth several times net assets, the buyer of such shares will be too dependent on vagaries and fluctuations of the stock market."
What's the benefit?
"The investor in shares, say, of public utility companies at about their net-asset value can always consider himself the owner of an interest in sound and expanding businesses, acquired as rational prices—regardless of what the stock market might say."
"The investor in shares, say, of public utility companies at about their net-asset value can always consider himself the owner of an interest in sound and expanding businesses, acquired as rational prices—regardless of what the stock market might say."
Nearly anyone can benefit from this method.
"A credible, if unspectacular, result can be achieved by the lay investor with a minimum of effort and capability."
"A credible, if unspectacular, result can be achieved by the lay investor with a minimum of effort and capability."
