Published in 1949 “The Intelligent Investor”
by Benjamin Graham takes on investing approach
called “value investing”, a concept he
created from his experience. After losing
most of his capital in 1929 market crash,
Graham sought safe and proof investing options.
Here are the most important lessons from The
Intelligent Investor:
Never give up and learn from your mistakes
Although he lost almost all of his capital,
he didn’t quit as most would have. Instead,
he learned valuable lessons about risk that
resulted in analyzing risks and valuing them.
Investing isn’t speculating or gambling
Markets should be looked at as an ally. You
should only buy when prices are low and sell
when they are high.
Minimizing risk
Graham always implied how important it is
to buy investments when it’s under its true
value. This is allowing profit when the market
revalues or offering protection if the market
goes downwards.
The margin of safety
The key point here is buying assets when their
value is lower than their true value, and
then later on selling those assets when their
value is back to normal or even goes up thus
earning a return from your investment.
See beyond the horizon
Keep your eyes on the long-term outcome. There
is no way of knowing what markets will do,
markets will fluctuate and always come back
to its true value.
