Product Details

• Amazon Sales Rank: #193360 in Books
• Published on: 1991-04
• Number of items: 1
• Binding: Hardcover
• 368 pages

Synopsis
This guide to the stockmarket offers principles proven by the success of investors for over 35 years. Its main objective in its philosophy of "value investing" is to protect the investor against the areas of possible error and to develop policies which are rational. It takes account of both the defensive and enterprising investor, outlining the principles of stock selection for each, and stressing the advantages of a simple portfolio policy. It features the use of comparisons of pairs of common stocks to bring out their elements of strength and weakness, and also the construction of investment portfolios designed to meet specific requirements of quality and price attractiveness.

Customer Reviews

Small Cap Value Stocks Lead the US Market through 2003
The Intelligent Investor effectively introduces the idea of examining a company's stock as though you might buy the whole company. This is the way that potential acquirers of the company will look at it. If it looks like a good buy as an acquisition, you have the added edge of a potential buy out to help buoy your stocks.

With so many stocks beaten down over the last few years, this is a good time to think about value investing. Also, remember that you can buy value investing indexed mutual funds now. And these have done well through 2003, especially the ones that focus on small capitalization stocks.

In March 2000, many people considered value investing about as useful as high-button shoes. If they had thought about value investng, they would have had another measure of how overpriced the market was. As a result, losses could have been avoided.

On the other hand, value investing will make you money more often than momentum investing will over the years. Long-term studies have shown that small cap value stocks beat the S&P 500 over time.

So even if this does not seem like this approach is right for you, you should learn more before rejecting this alternative.

Here's another reason why: Almost all stocks will be volatile relative to their average p/e, price/cash flow, or price/revenue ratio. By paying attention to this volatility, you can learn a lot about when to buy and sell a given stock. Astute traders based on value principles can also use options to lock in even larger profits, taking the normal ebb and flow of valuation into account.

Those who envy Warren Buffett's track record should understand these principles as well, because these ideas are the basis for some of the Buffett investing style. He later added a perspective on stock markets and human psychology that Graham did not have: Brand names which are attached to quality products and services will tend to outperform the market, especially when they have the potential to expand their geographical distribution around the world and to add new products.

Another benefit of understanding the lessons in this book is to help you know when value investors will probably want to start buying a "beaten down" stock, which will often mark the beginning of the stock's turnaround.

You will look in vain for a better book on value investing, and understanding this subject is like going to Driver's Education when you are learning to drive. It is an important groundwork for being a safe investor.

The most important concept you will ever learn as an investor is that avoiding losses is more important than making gains. It is too hard to make up for the losses, so make more careful buys in the first place and be prepared to leave before your precious capital is dissipated.

If you are a new investor, another lesson for you will be the need to establish a discipline to how you invest. This book will give you a good sense of how that can be done.

Otherwise, the stock market can be an expensive form of gambling. Please do buy, read, think about, and use the insights of this book to create more value for yourself and those you care about. We will all be richer if you do.

After you have finished enjoying this book, I suggest that you also think about where else in your life you should be careful not to make big mistakes. How about in your relationships?

May your wealth compound safely and intelligently for you!

Must Read Book
This is a great book that makes Warren Buffett so, so successful. Margin of Safety.... the 3 most important words of investing...are very clearly illustrated. If this principle is deeply ground into the mind of investor, you will achieve remarkable wealth with the highest sefety applied to portfolio.

The second equally important principle is understanding the Mr Market's mood. If you understand the bizzare manic-depressive mood of Mr Market... you will be able to take advantage of poor Mr Market and benefit greatly from it.

If Warren Buffett thinks this is a great book....then surely, we will feel the same too. He who follows and learns passionately from the great master will be great too! =)

A must and a Classic investment book
This book is a must.
If you want to learn about investment read and reread this book, and have the patience for it, this book should be one of the first few investing books on your shelf.

Remark : but this book is dated on a few topics.