Before starting The Intelligent Investor Summary let’s discuss about book and author.
Introduction of Author and Book
The book The Intelligent Investor is written by a very famous author of finance and investment none other than Benjamin Graham. He was born on 9th May 1894 and gave this world a lot of books on the subject of finance. He studied at the Columbia University and attained education pretty early at the age of 20. After graduating he held a career at Wall Street and from there his investment physiology and methods started to take a new a turn.
In this book, he has described the attitudes and behaviors of the investors and is a perfect guide to make people realize and understand the methodology of investment. Most of the books he wrote belonged to the subject of investment and he used to give great techniques to manage the investments, debts and finances for a common person as well as for a billionaire investor. The famous books under his authorship are, Security Analysis, Storage and Stability and many more. Not only he has been famous for providing some great books on the subject of investment but along with this he also suggested some different disciplines in the file of investment that took a great success.
These disciplines are being used by a lot of people till now and people are making numerous successful investment attempts using his methods and are gaining much. Many writers and businessmen of his time have praised him for his outclass theories and the way he has taught the subject of investment. He passed from this world at the age of 82 in the year 1976.
The Intelligent Investor Summary
When it comes to having a look at the summary of this book, The Intelligent Investor we may learn the different factors which are important to know about investment. In the book, the writer has featured two different kinds of approaches an investor might have and has named as being defensive and enterprising. In this context, the defensive investor is someone who takes less risk and makes fewer efforts because he wishes to avoid losses. Whereas, when it comes to considering the enterprising investor by this he means to point someone who is aggressive in terms of investment, he gives time, makes efforts and in return expects huge returns.
Here he also highlights that at many instances many investors and experts have also been wrong in the past based on their investment ideas and thoughts. He highlights all this through two examples, he said that airline companies and their stocks were favored by many people because travelers were increasing at a crazy speed though it was true but this lasted for a little span of time and later on many airline companies couldn’t stay enough profitable. On the other hand he also highlighted that many people were not certain about foreseeing growth in the field of computer and hence didn’t invest much whereas later on the computer company IBM flourished like anything.
Keeping his examples and methodology in mind he was trying to explain the fact in his book that not always when a share price is going up it comes out to be favorable for people and investors in fact in the longer run the company might end up struggling for its survival. Where as in the case if the company might not having a rise in share price at a quick rate might be the one which ends up having a more stable condition than the company having a high share price. Therefore, it shows that the share prices not a right and fair parameter to judge a company and its stability.
Investment is always a subject that everyone is concerned about in order to secure their future, in this book the writer has provided for different ways in which a person may work on their investments in shares. The value of shares and its price is always one of the most sensitive things to be considered and when it comes to trading in share market the accurate understanding plays a very essential role. The writer in this book has highlight some really interesting points regarding the change and fluctuation of the share price in the share market and this is how this book tells the readers about the depth and working of the share price.
This book also determines and discuses the impact of share price rise on the investors and their investments and teaches lessons which are eminent for the investors to understand and analyze. This book features three facts, the first one being planning for the profit in the longer term, the second one being protecting oneself from the losses and the third one being that people who invest must not get crazy after the profits.
The book has also been rich in numerous quotes associated with the concept of investment and in every quote the importance of managing investments sensibly has been discussed. This book is rich in teachings associated with the investments and there is a significant need to bring all these considerations in mind when planning or making an investment. The writer emphasizes the concept of analyzing the investments for longer terms. Many people who are hasty in nature usually end up investing in shares for short terms profits which is not at all a steady approach the best thing to do here is to plan for a steady and long term approach. People must not run after profits and rather they must secure themselves against the losses.
The writer also explains the concept of not trust the share market, since the market is always unpredictable and always featured with ups and downs which the writer calls to be its mood swings is something which very important to think of, the investors must not believe what the market says on the regular basis. The book is all in all based on the entire concept of investment and is a very ideal choice for everyone out there who is entering in the stock market for the first time and wishes to learn about this market.
If the young generation who might in future plan to invest in shares tend to read and go through this book they will be able to learn a lot of things and important matters which are associated with the stocks and share prices so that they may invest accordingly and protect themselves from the losses in future.
The Intelligent Investor Summary – Conclusion
This book written by Benjamin Graham is a very ideal choice to be considered and read because it is an interesting book for people who are into stock markets and need to invest in shares. It is a great help for a number of people who are new to investments and need to learn some good methods of making relevant investment. However, in the book itself, the writer states that there are no food proof methods which may be used in terms of making investments in the stock market yet a few strategies may be considered and understood about the stock market itself. As he states that not always the share price is an indicator of the stability of the company in the longer run and this no doubt a significantly suitable approach to consider.
I hope you will have understood the complete book “The Intelligent Investor Summary“. If you are interested to read the complete book, you can free Download or buy The Intelligent Investor pdf.