This book is capable to engage its readers through all the motivational words, arguments, logic, etc. to gain more knowledge about investment, stock market, profit and loss, and other financial concepts. . It is considered as a guideline which you must own if you are going on the path of business. Warren Buffet, the world’s one of the best investors gave nothing but the best positive reviews about this book here. It is a very inspirational and informative book. We all have a look and download the intelligent investor pdf book and read it.
About the author-
The writer of this book “the intelligent investor”; is none other than the famous American economist, investor, and professor as well, Benjamin Graham. He was born in 1894 in London and died in 1976 in France. He was also known as “the father of investing” as he left us two of his jewels one called “Security analysis” that he wrote with David Dodd, and another one is this book called “The intelligent investor”. This book was originally published in 1973 before Graham died, but it’s edited version came finally to market in 2003. If you want to experience the great profitable knowledge this book has to offer please download the intelligent investor pdf and read it for free.
Lessons from this book-
1. Investment doesn’t just mean putting your money into something. It means to have a long term plan and see through the entire investment. That’s how you will have profited in a long run.
2. Never fully rely on the stock market. The stock market is a very unreliable place to invest so one should never fully trust it as it can change at any moment when you are unaware of it.
3. There are always three aspects a practical investor should focus on and they are,
· To have a keen eye on the economic build-up of a company that you are investing in
· How good they are actually when it comes to the matter of management
· And do they pay their dividends regularly?
4. To invest brilliantly one should follow the tactic of having a broad perspective by just not being stuck in the present also think about what has happened before and could happen in the future.
5. Invest in a bigger field, have lots of options in your hand, and reflect yourself and your morals through your investment.
how can we apply these rules in our life-
As Benjamin Graham had a lot of suggestions to offer here, we learned a lot about investment and business through this book. So when the question arises, what lessons should we apply in our real day to day life we have the options given below-
1. We should hire an advisor
2. We should invest more in open-end funds.
3. We should gather more information about the stock we are about to invest in.
4. We should do more long term tradings rather than short term
5. we should be more practical and avoid non- materialistic expectations
6. When we buy stock from a company they are bound to answer our inquiries and give us all the necessary pieces of information, so do not hold back if you have any questions related to that matter.
A tour through the book-
The intelligent investor book written by Benjamin Graham has a total of 20 chapters. The first chapter is talking about “the difference between investment and speculation”. This is a very important topic for an investor to know.
The second chapter is about the most important segment of the economy and business. Which is none other than “Inflation” and what we should do to manage inflation.
Then we come to one of the most relevant topics in investment. “The Stock Market” and the century of the stock market in chapter 3.
Chapter 4, 5, 6, 7, 14, and also 15 is all about the description of passive and active investors and what kind of investment we should do.
Let’s talk about chapter 8 which is all about the inconstancy of the stock market and what is the Mr. Market concept.
Chapter 9 and 10 talks all about investing in funds and its advisors.
Then comes chapter 11 which is about investment selection and analyzing stock and bond.
How much you earn per share, these are the questions that are answered in chapter 12.
There are some comparisons along with some examples that are shown in chapter 13, 17, and 18.
Chapter 16 here talks about convertible issues and warrants.
Chapter 19 about dividend policy which includes the shareholders and management.
And last but not least chapter 20 which is the most important and “must-read” chapter. Which talks about the margin of safety.