Summary: The Intelligent Investor by Benjamin Graham
The intelligent investor is written by Benjamin Graham in 1949. Benjamin Graham was an economist and a famous finance and investment consultant. This book is considered the Bible of investing. It is the best book that tells us the fundamentals of investing. It has influenced many big investors till generations one of them is Warren Buffet. Graham has discussed six basic principles of investing in anything. He said that you should have in-depth knowledge of the company you are going to invest in.
An investor should know who owns that particular business he is going to invest in and should go for a gradual profit instead of quick profits in investments. Go for the stocks that are high quality not that are in trends. Always keep the margin of safety in any investment. Always value your own analysis of the stocks and companies. Graham has also used a parable of Mr. Marketer that was popular. For understanding complex market fluctuations this parable is the best of all times.
Mr. Marketer is enthusiastic, emotional, and has really quick mood swings but he shows up daily. An intelligent investigator is one who purchases the shares when the value of a stock is less than the fundamental value. And should be willing to sell his shares when the value of a share is maximum than the fundamental value. Also, it is important to any invest 70 percent of your all assets play on the safe side in life. Moreover, instead of investing all your amount in one company try diversification so in even worst case you have something in your hands.
This book is a complete package for someone who wants to do investments and be successful in it for a whole life. It conveys all the key points an investor should keep in his minimum while investing. Book gives the concepts of diversification, inflation, asset allocation, market fluctuations, and margin safety. The language of the book is quite simple, a person who does not have knowledge about investments can even learn all core from this book. Even after a century, this book is according to the market investing strategies.