The Intelligent Investor book review. 

Arguably, one of the most well written and famous books within the business community, The Intelligent Investor, authored by Benjamin Graham is praised as being “the best book on investing ever written”. 

 

Full, from front page to back with useful break downs and explanations, following the history of the stock and bonds market. This book covers so many topics from defensive and offensive investing strategies, company comparisons and breakdowns, market fluctuations and cycles to, of course, how to ensure you are intelligent with your investment strategies.  

Intelligent-investor-book-cover

When was The Intelligent Investor published?

Authored by famous investor Benjamin Graham, the intelligent investor was first published in 1949. Graham who started began teaching in 1928, has had his legacy cemented into history with this book. Regarded by many famous investors as “the greatest book ever written about investing” investors such as Warren Buffet, Irving Kahn and Walter Schloss. The book has been through many revisions throughout the years ensuring the material is still up to date. 

What is the Intelligent Investor about?

The Intelligent Investor is a book about the trading mentality you need to develop in order to be a successful investor. The book gives professional insight into different trading and investing strategies as well as how you could go about valuing a stock or potential investment; often recalled as finding the intrinsic value of an asset. 

 

The book does so well at breaking down such a vast and ultimately difficult subject to learn, that any reader that has the patience to learn and study the information found in this book, should have a undeniable foundation of which they are able to build a solid investment strategy from. 

 

Of course the book is filled with charts, numbers and percentages; as to be expected; however, I found the most useful lesson in the book was the breakdown between investing and speculation. By far the easiest chapter to understand, Chapter 1 – Investment versus speculation: Results to be expected by the intelligent investor, explains what I believe to be an overlooked aspect of investing.

 

Many investors; especially those starting out; will begin their journey by trying to build a strategy, studying financial records and reading charts. All useful aspects of course. Although many fail to realise that the most important aspect of your investing journey is yourself. Things like emotional resilience will help you stick to your strategy, allow you to separate your emotions from your money as well as the ability to not let what is going on in the news and social media cloud your judgement. Emotional intelligence and due diligence are the two biggest factors in ones journey to becoming an intelligent investor. Think: What good is a fool-proof investment strategy if it is never followed. 

Is the Intelligent Investor still relevant today?

With as much value Benjamin Graham provides in this book accompanied by the numerous revisions this book has had, it is absolutely the case that the book is still more than relevant today. Grounded with sound mind and logic just ensures that the book truly doesn’t age. Any person looking to develop a strong foundation for their trading and investing decisions to be made from will absolutely take this book seriously and will benefit massively if read. 

 

 

Is the Intelligent investor for beginners?

It would be naive to assume that a book solely about investing would be straight forward and easy to follow right? In saying this however, nothing to do with investing and trading is straight forward. Anyone who has no interest in investing with probably find this book rather difficult to read. Therefore, I think the book is suitable for people who have an interest in learning about value investing or are trying to develop their skills further. This book will serve to be very valuable. As mentioned before if you are wanting to take your investing career or portfolio seriously, this is the right book for you. 

What is the best book on value investing?

To re-iterate, when a book stays as relevant as the Intelligent Investor has for 72 years, you know that it must be a special book. In my opinion it has to be the best book on value investing ever written.

 

 

Like every other book out there, there’s no such thing as a perfect one. Whilst this is a fantastic read with loads of useful information and different perspective. It is a difficult read. Each and every page (all 500+) is filled with industry phrases, charts to analyse, and percentages to ponder. One of my favorite books I have read; but due to the difficulty it does not quite make 5 stars. 

 

 

The great thing about the book is that it really doesn’t matter what your investing prowess is. whether you are just starting your investing journey or have been in the industry for a period of time, this book is still a fantastic recommendation. 

 

Our CEO Score: 4.7 

 

4.7/5

Here is a list on content for the book:

  • Introduction: What This Book Expects to Accomplish
  • Commentary on the Introduction
  1. Investment versus Speculation: Results to Be Expected by the Intelligent Investor
  2. The Investor and Inflation
  3. A Century of Stock Market History: The Level of Stock Market Prices in Early 1972
  4. General Portfolio Policy: The Defensive Investor
  5. The Defensive Investor and Common Stocks
  6. Portfolio Policy for the Enterprising Investor: Negative Approach
  7. Portfolio Policy for the Enterprising Investor: The Positive Side
  8. The Investor and Market Fluctuations
  9. Investing in Investment Funds
  10. The Investor and His Advisers
  11. Security Analysis for the Lay Investor: General Approach
  12. Things to Consider About Per-Share Earnings
  13. A Comparison of Four Listed Companies
  14. Stock Selection for the Defensive Investor
  15. Stock Selection for the Enterprising Investor
  16. Convertible Issues and Warrants
  17. Four Extremely Instructive Case Histories and more
  18. A Comparison of Eight Pairs of Companies
  19. Shareholders and Managements: Dividend Policy
  20. Margin of Safety” as the Central Concept of Investment
  • Postscript
  • Commentary on Postscript
  • Appendixes
  1. The Superinvestors of Graham-and-Doddsville
  2. Important Rules Concerning Taxability of Investment Income and Security Transactions (in 1972)
  3. The Basics of Investment Taxation (Updated as of 2003)
  4. The New Speculation in Common Stocks
  5. A Case History: Aetna Maintenance Co.
  6. Tax Accounting for NVF’s Acquisition of Sharon Steel Shares
  7. Technological Companies as Investments
  • Endnotes
  • Index

I hope you enjoyed this article, and it inspired you to purchase this book. If you would like to read some other book reviews, be sure to check out our Financial Times Guide review or Our Rich Dad Poor Dad review! 

 

 

If you have any comments, I would love to hear them, please don’t hesitate to send me a message using the form to the right. 

 

 

Thanks!

 

 

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