The Intelligent Investor
Library · Investing
- Author: Benjamin Graham
- FinSimLab rating: 5/5
- Reading: Demanding
- Finance level: Advanced
- Published: 1949
The book that defines value investing: margin of safety, analysis and discipline in the face of the market.
What it covers
Graham separates the defensive investor from the enterprising one, introduces "Mr. Market" as a moody business partner and argues for buying only with a margin of safety. Current editions include commentary by Jason Zweig that updates the examples. It is long and demanding, especially the analysis chapters.
What you will learn
- What margin of safety is and why it protects you from calculation errors.
- How to use market swings instead of reacting to them.
- Which criteria Graham used to select stocks.
Who it is for
Investors with some background who want to understand where fundamental analysis comes from.
Concepts
Value investing, Valuation, Risk
What you will not learn
A quick guide: it is long, and its old examples need the updated commentary.
Already read a book on this?
- It shares buying good companies at good prices with The Little Book That Beats the Market. If you have read The Little Book That Beats the Market, this one mainly adds the full framework and the margin of safety. The Little Book That Beats the Market
- It shares valuing companies with The Little Book of Valuation. If you have read The Little Book of Valuation, this one mainly adds discipline and the margin of safety. The Little Book of Valuation
Related Academy guides
- How to do a basic fundamental analysis of a stock
- P/E ratio explained: how to value a stock
- P/B ratio explained: price-to-book in fundamental analysis
- How to value a stock: multiples and discounted cash flow
Put it into practice
More investing books
- A Random Walk Down Wall Street
- The Little Book of Common Sense Investing
- The Simple Path to Wealth
- One Up On Wall Street
- Common Stocks and Uncommon Profits
- The Little Book That Beats the Market
- The Most Important Thing
- The Little Book of Valuation
Descriptions written by FinSimLab for educational purposes. They do not summarise the books and are not investment advice.