The Intelligent Investor: The Definitive Book On Value Investing

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In The Intelligent Investor: The Definitive Book On Value Investing, Benjamin Graham teaches investors his philosophy of value investing. Summary Of The Book The Intelligent Investor: The Definitive Book On Value Investing is Benjamin Graham’s definitive guide on his investment approach called value investing, one he later refined in collaboration with David Dodd. It seeks to teach and inspire investors to make intelligent investment choices and to sidestep potential errors to eventually achieve their financial goals. The book has been described as ‘the best book on investing ever written’ by Warren E. Buffett, a famous investor who also happened to be Graham’s student. Value investment is opposed to the assumption that the stock market is efficient i.e. well-informed about every company in the market. From such an assumption,one infers that the stock price (in most cases) reflects the base value of the company. In other words, there is no way stocks can be valued erroneously. The underlying idea in value investing is to buy stocks that are priced lower than their true value, and hold them till their prices rise to their true value, thereby gaining a return on the investment. In this particular edition of the book, Zweig adds his perspective of the modern economic scenario to Graham’s investment philosophy. He helps readers understand Graham’s examples and apply his principles while investing in current markets. The book begins with a foreword by Warren E. Buffett, and a note about Graham by Zweig. It covers topics like the investor, inflation, stock selection, and market fluctuations. Every chapter ends with a commentary by Zweig. Four informative case histories are also included in one of the chapters. This book was first published in 1949. It has been deemed a must-read book for investors ever since. It was revised several times by Benjamin Graham, and the last (fourth) revised edition was published in 1973. This particular edition was published in 2003. It contains footnotes and commentaries added by Jason Zweig to the fourth edition. Zweig has maintained the integrity ofthe original text by Graham. About The Authors Benjamin Graham was an American professional investor and economist. He was of British origin. He has written quite a few papers and books. Some of his works are Security Analysis, The Interpretation Of Financial Statements, Storage And Stability: A Modern Ever-normal Granary, and The Intelligent Investor: The Definitive Book On Value Investing. Graham was born in London, England. He graduated from Columbia University at the age of 20. He was invited to be a instructor in Philosophy, Mathematics, and English. But he took up employment on Wall Street, and later started the Graham-Newman Partnership. His book, Security Analysis, was highly praised, and is still considered the stock market bible for serious investors. He has inspired several successful businesspeople. Jason Zweig is a columnist who writes about investing and personal finance. His books include Your Money & Your Brain, Benjamin Graham: Building A Profession, The Little Book Of Safe Money: How To Conquer Killer Markets, Con Artists, And Yourself, and the revised edition of The Intelligent Investor: The Definitive Book On Value Investing. Zweig studied Islamic and Jewish culture and history at the Hebrew University in Jerusalem, Israel. He graduated with a Bachelor of Arts degree in art history from the Columbia University, New York. He has also travelled extensively across Europe and the Middle East. In 2001, Northwestern University’s Medill School of Journalism named him the “best financial columnist for a national publication”. He has written several columns and articles for Time magazine, Money magazine, and CNN.com. He currently lives in New York City and is a personal finance columnist at The Wall Street Journal.