The Intelligent Investor
By Benjamin Graham
The Intelligent Investor by Benjamin Graham, first published in 1949, is a widely acclaimed book on value investing. The book provides strategies on how to successfully use value investing in the stock market. Historically, the book has been one of the most popular books on investing and Graham’s legacy remains.
Investment is not gambling or speculating
An investment is going to protect the principal and provide an adequate return. Anything that does not meet these criteria is speculation.
Margin of Safety
In simple term, Graham's goal was to buy a dollars worth of assets for $0.50
Not every investor has a lot of time to analyze the stock and invest. Graham said that the majority of people should be a defensive investor. He said, aim for an investment portfolio of 50-50 split between stocks and bonds, and rebalance every year base on the changes.
This kind of investor has a lot of time to spend looking at the market. As enterprising investor, you can choose the correct stocks and bonds to invest in.
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