The Intelligent Investor - Benjamin Graham

In the past 12 months the economy and stock market have taken an almighty battering. Previously over inflated stocks have fallen dramatically significantly effecting the wealth of those who had large sums invested within them.The recession has been labelled as long and deep with the stock market showing no signs of recovery anytime soon. So you may ask why you would want to study on investing strategy when the current conditions seem so gloomy!
...silver lining. In this instance the positive that can be drawn is the fact that negative expectations have allowed the stock market to reach a level where some stocks can be labelled as good value. For those with disposable income that they are not in need of it for the next 3-5 years the current economic conditions have provided this individual with an opportunity to profit from the content found within this book.

Benjamin Graham ... more

In the past 12 months the economy and stock market have taken an almighty battering. Previously over inflated stocks have fallen dramatically significantly effecting the wealth of those who had large sums invested within them.The recession has been labelled as long and deep with the stock market showing no signs of recovery anytime soon. So you may ask why you would want to study on investing strategy when the current conditions seem so gloomy!

However, as with many negative situations there is always a silver lining. In this instance the positive that can be drawn is the fact that negative expectations have allowed the stock market to reach a level where some stocks can be labelled as good value. For those with disposable income that they are not in need of it for the next 3-5 years the current economic conditions have provided this individual with an opportunity to profit from the content found within this book.

Benjamin Graham has been a fundamental figure in investing strategy and can be described as the first proponent of value investing. Many of the worlds greatest investors have branched out from Graham's teachings. A few of his followers include well known figures such as: Warren Buffet, Walter Schloss, Irving Khan etc. Highlighting the credibility of Graham's work with Buffet even going as far to describe it as 'The best book on investing ever written'

However, it must be noted that this book is not a get rich quick scheme neither provides the reader with a definite path to reach a steady flow of income. Instead the book aims at reducing the probablility that mistakes are made and increase an awareness of the best available investment schemes for a variety of readers. Graham addresses strategies for investors who have enough time to thoroughly research the markets, funds and companies that they are looking to invest in. For those looking for a more hands off approach Graham also includes some more defensive options which require less attention.

Topics such as Graham's views on Mr. Market as well as his theory on margin of safety are also vital for any investor to gain an understanding of. As well including certain theories he also mentions the best investing strategy to adhere to during different economic conditions such as rising inflation or declining interest rates. Some of these investment opportunities are slightly outdated, but it is surprising how many still provide the best opportunity to the investor. For those that purchase the copy with Jaso Zweig's comments they will have the advantage of gaining an updated view on what funds still exist and how they may have changes. (Although some of Zweig's comments are to be taken with a pinch of salt and definitely not valued more than the original theories written by Graham). I will not go into too much detail of the content of the book as I would not want to spoil it for the first time reader.

In summary, this book should be read by everyone who has ever thought of investing their money anywhere else than in their mattress or in a shoe box in the cupboard. Not only does it cover the ins and outs of investing in shares but also the many bonds and index funds available to the reader. It is not a book to take on holiday and having a glass of red wine and trying to relax whilst reading it is not recommended. However, for those that are determined to improve their financial situation with patience and discipline should sit down with a strong cup of coffee and get stuck in!

I hope that all that read this book have financial success, for me it is definitely an essential read for those looking to optimise their financial situation.

 

...less