The Intelligent Investor Must Be Read by Budding Investors

Last Updated July 17th 2019

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.

See also: The Number 1 Financial Regret You Want to Avoid At All Costs

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.

Don't miss: Tony Robbins, a Man that Creates and Inspires Success

If you enjoyed reading this article from Trading Education, please give it a like and share it with anyone else you think it may be of interest too.

free forex trading course


We'd love to hear from you!

Please share your comments or any suggestions on this article below

more from Trading Books Reviews...

Trading-Education Staff
As most people know, blockchain technology is the backbone of cryptocurrency and what makes it work. However, there are a plethora of other uses as...
Trading-Education Staff
If you’re interested in cryptocurrency trading, then it is likely that you have wondered where is the best place to trade it. Essentially,...
Trading-Education Staff
What is cryptocurrency? In case you haven’t figured it out yet, we live in the digital age. It was only a matter of time before something so...
Trading-Education Staff
If you’ve started researching cryptocurrencies then you most likely have seen the word smart contracts appear a fair few times, particularly if...
Trading-Education Staff
Bitcoin’s rebound got a lot of attention in 2019 as you probably well know.  For a moment, it looked like it may climb back up to the...
Trading-Education Staff
Facebook’s Libra will be released in 2020 and the project has gained a solid backing from many different companies who are also involved in the...