The Intelligent Investor: The Complete Guide to Value Investing ( The Intelligent Investor The Definitive Book On Value Investing ) is a book by Benjamin Graham , a well-known American economist and professional investor who is often called the “father of value investing ”. The book, first published in 1949, became a bestseller, was repeatedly reprinted and translated into many languages, including Russian. According to Warren Buffett , "this is the best investment book ever written" [1] . This belief is shared by such followers of Graham, as Irving Kahn ( Eng. Irving Kahn ) and Walter Schloss ( Eng. Walter Schloss ). “Reasonable investor” is invariably present in various lists of books recommended for beginning investors, and in lists of the best books about finance [2] .
| A smart investor: A complete guide to value investing | |
|---|---|
| The Intelligent Investor The Definitive Book On Value Investing | |
| Author | Graham, Benjamin |
| Genre | Business literature, finance |
| Original language | English |
| Original published | 1949 year |
| Publisher | Harper & Brothers ( English ), Alpina Publisher |
| Pages | 568 |
| Carrier | Book |
| ISBN | 978-5961418743 |
Content
"Mr. Market"
Mr. Market is Graham's favorite allegory , where Mr. Market is a helpful person who knocks on a shareholder’s door every day, offering to sell or buy his shares at different prices. Often the prices offered by Mr. Market seem plausible, but sometimes they look just ridiculous. An investor can either agree with the declared price and conclude a deal with him, or completely ignore it. Mr. Market does not care - in any case, he will return the next day to offer a new price.
The essence of this allegory is that the investor should not pay attention to the inconsistency of Mr. Rynok as the main factor determining the value of the shares that he, the investor, owns. He should rather benefit from the vagaries of the market than to participate in them. The investor is advised to focus on the real work of the companies whose shares he owns and receive dividends , than to concentrate on the often irrational behavior of Mr. Rynok.
Editions
Since its first publication in 1949, the book The Intelligent Investor has been revised several times. Last in 1971-72. This version was published in 1973 as the “Fourth Amended Edition”, ISBN 0-06-015547-7 . It includes a preface written by Warren Buffett. Benjamin Graham passed away in 1976. The comments and footnotes of Money magazine analyst Jason Zweig were added to the 2003 edition [3] .
- Benjamin Graham. The Intelligent Investor (reprint of the 1949 book). - Collins, 2005 .-- 269 p. - ISBN 0-06-075261-0 .
- Benjamin Graham and Jason Zweig. The Intelligent Investor (revised 1973 edition). - HarperBusiness Essentials, 2003 .-- 640 p. - ISBN 0-06-055566-1 .
- In Russian
- Benjamin Graham, Jason Zweig. Intelligent Investor = The Intelligent Investor: The Definitive Book On Value Investing, Revised Edition. - M .: "Williams" , 2006. - S. 672. - ISBN 5-8459-0910-4 .
- Benjamin Graham The Intelligent Investor: A Complete Guide to Value Investing = The Intelligent Investor The Definitive Book On Value Investing. - M .: Alpina Publisher , 2014 .-- 568 p. - ISBN 978-5-9614-1874-3 .
Contents
- Jason Zweig . Words of gratitude
- Warren Buffett . Preface to the fourth edition
“This book describes in detail and clearly the correct approach to investing, based on emotional discipline [4] .”
- Benjamin Graham (1896-1976)
- Jason Zweig. A few words about Benjamin Graham
- Foreword What is this book about?
The purpose of this book is to help lay investors understand the intricacies of designing and implementing investment policies.
- Preface Comments
Chapter 1. Investments and Speculation : Choosing a Reasonable Investor
The basic principles of the portfolio policy of non-professional individual investors are presented.
Comments on Chapter 1
Chapter 2. Investor and inflation
- Corporate Inflation and Profit
- Alternative ways to protect against inflation
Comments on Chapter 2
Chapter 3. One Hundred Years of the Stock Market : Landscape of the Beginning of 1972
Comments on Chapter 3
Chapter 4. The basics of portfolio policy of a passive investor
- Key Question: Equity to Bonds Ratio
- Bonds in the investor's portfolio
- Direct preferred shares
- Other types of securities
Comments on Chapter 4
Chapter 5. Passive investor and stocks
- Investment Characteristics of Shares
- Share Selection Rules
- Growth Stocks
- Portfolio change
- Averaged Equity Investment Method
- Investor Personal Circumstances
- A few words about risk
Comments on Chapter 5
Chapter 6. Portfolio policy of an active investor: What should not be done
- Second tier bonds and preferred shares
- Foreign government bonds
- New issues of securities
Comments on Chapter 6
Chapter 7. Portfolio policy of an active investor: What to do?
- Basics of working in the market: timing according to the formula
- Emphasis on growth stocks
- Field of activity of an active investor
Comments on Chapter 7
Chapter 8. Investor and market fluctuations
- Market fluctuations: benchmark for making investment decisions
- Buy low, sell high
- Formula Investing
- Market fluctuations in portfolio value
- Fundamental and market value of shares
- Bond price fluctuations
Comments on Chapter 8
Chapter 9. Investor and investment funds
- Return on investment funds
- "Performance Funds"
- Investment Funds: Closed or Open?
- Balanced Funds
Comments on Chapter 9
Chapter 10. Investor and his advisors
- Investment advisors and trust and consulting departments of banks
- Financial agencies
- Brokerage houses
- Investment banks
- Other consultants
Comments on Chapter 10
Chapter 11. Analysis of securities of a non-professional investor: general views
- Bond analysis
- Common Stock Analysis
- Factors Affecting Capitalization
- Capitalization level of “growth stocks”
- Industry analysis
- Two-stage analysis
Comments on Chapter 11
Chapter 12. What to consider when analyzing earnings per share
- Average profit indicator
- Calculation of past growth rates
Comments on Chapter 12
Chapter 13. Analysis of securities in practice: Comparison of four companies
Comments on Chapter 13
Chapter 14. Selection of shares by a passive investor
Comments on Chapter 14
Chapter 15. Selection of shares by an active investor
- Graham-Newman Method
- Second tier companies
- The only criterion for choosing ordinary shares
- "Profitable" shares
- Special cases
Comments on Chapter 15
Chapter 16. Convertible Securities and Warrants
- The effect of convertible securities on the status of ordinary shares
- Change of preferences: from ordinary shares to preferred
- Exchange Warrant Options
Comments on Chapter 16
Chapter 17. Four extremely instructive examples
Comments on Chapter 17
Chapter 18. Comparative analysis of eight pairs of companies
Comments on Chapter 18
Chapter 19. Shareholders and company management: dividend policy
- Shareholders and Dividend Policy
- Share dividends and stock split
Comments on Chapter 19
Chapter 20. Safety margin - the basis of investment activity
- Diversification theory
- The main difference between investment and speculation
- Investment concept development
Comments on Chapter 20
Afterword
Comments on the afterword
Applications
Notes
Notes
- ↑ Graham, Benjamin. The Intelligent Investor. - 2003 edition. - HarperCollins , 2003-07-08. - P. front cover.
- ↑ Recommendations of the site money.ru.msn.com
- ↑ Graham, Benjamin. The Intelligent Investor. - 2003 edition. - HarperCollins , 2003-07-08. - P. vii.
- ↑ Benjamin Graham, 2014 , p. ten.