The Intelligent Investor Must Be Read by Budding Investors

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Last Updated March 26th 2021

This book must be read by budding investors

If you're thinking of looking into reading a few investing books to round off your financial investment education, The Intelligent Investor by Benjamin Graham is widely considered to be one of the best books on value investing - it has even been described as the investing 'Bible'. Warren Buffet has commented that the Intelligent Investor is the greatest "investment book of all time", and it is not difficult to see why it is so popular.

About the Intelligent Investor by Benjamin Graham

Find it on Amazon >> the Intelligent Investor by Benjamin Graham

The Intelligent Investor is an investment book that's been around a long time, it was first published in 1949 and has been revised four times in that period. Although many of the companies referred to within the book are no longer around, it's still considered to have timeless appeal and words of wisdom suitable for the modern era.

Graham comments in his book that "investment is most intelligent when it is most business-like" and the basis of his investment advice is to consider that investments are about companies and owning shares is part ownership of a business. His principle for wise investing is to ensure you have a "margin of safety" or, in other words, to ensure that there is evidence a company's earnings are greater than their outgoings and can withstand any significant sales or market declines.

The book recommends taking a "protective" approach towards investing which involves looking at the information and statistics about a company as this is not based on an optimistic approach but on pure mathematics.

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For Graham, the book celebrates the "intelligent" character of an investor, who should not be looking to make quick profits from a rising market, but invests with the long-term view of conserving capital and will not tend to be swayed by the swings of the market. He comments that there is a vast difference between investing and speculating, with investments taking place after thorough analysis and judgement that a satisfactory return will be received. According to Graham, investors should have no real concerns about market direction, other than to gauge the best times for the purchase of new stock.

The Intelligent Investor is well worth reading, many investors still consider this book to be their investment 'Bible', so it should be on your bucket list of investment books to read.

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