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Summary of The Intelligent Investor 

4.6 . 4582 reviews

Short summary

The Intelligent Investor is a masterpiece written by Benjamin Graham as a guide to investors everywhere who need to learn the rules of value investing — an approach that involves putting money in well researched stocks as opposed to just speculating. Benjamin Graham was an American economist, professor, and investor. His books: Security Analysis (1934) with David Dodd and The Intelligent Investor (1949) are the foundation for modern-day investing. His investment philosophy stressed investor psychology, nurturing the intelligent investor mindset. Hailed as the father of value investing, Benjamin Graham sought to educate and inspire young investors through his books. Securities expert and renowned author Jason Zweig also lends his voice in echoing these hard truths and channeling them to the investor of today's market. As you go through this summary, you will be introduced to investing in case you're a newbie. You will then learn how to pick winning stocks, and the psychology needed to stay sane and make profits. “The intelligent investor is a realist who sells to optimists and buys from pessimists.” ~ Benjamin Graham

Table of content

  • Summary of The Intelligent Investor
  • About the author
  • What is The Intelligent Investor about?
  • Who should read The Intelligent Investor
  • Topics in The Intelligent Investor
first key point

Investing is really simple if you take the time to learn it

Listen the first key point
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By definition, an investor is any person or firm that commits capital with the expectation of receiving financial returns. Investors rely on different financial instruments to earn a return rate and accomplish important financial objectives like building retirement savings, funding a college education, or merely accumulating additional wealth over time.
An investor is an individual who takes calculated risks with hopes of financial return.
An investment is usually an asset bought after careful research to generate an increased monetary return or appreciation in the future.

In this summary, Benjamin Graham and Jason Zweig go deeper and offer more insight into investing. They introduce readers to two terms commonly used in the world of stock exchange trading — investment and speculation. An investment operation ensures the security of your invested capital and a promise of profit. Speculation is an operation that neither assures the security of your money nor your profit at the end of the investment period. Thus, an intelligent investor is involved in ventures that will yield a long–term reward while a speculator is more interested in what they can get in the short–term.

You will understand these two categories of people subsequently. You will also see how to conduct proper research before putting your money out there. At the end of this summary, you will learn how to make the best choice when faced with multiple investment options.
People who invest make money for themselves; people who speculate make money for their brokers. ~ Benjamin Graham
second key point

The intelligent investor is one who makes decisions based on ample research so as to not incur losses

Intelligent investors observe the company whose stocks they want to buy, study the history of gain and losses, and protect themselves from any losses before moving forward to invest. They have long–term goals and know better than to speculate, and that's why they invest in stable stock returns instead.
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third key point

The intelligent investor makes wise decisions to stay ahead of the curve

fourth key point

Becoming an investor involves a lot of research and practice

fifth key point

The enterprising investor is an intelligent investor and a risk–taker

sixth key point

The intelligent investor picks the best deal from the multitude of options

seventh key point

Conclusion

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What is The Intelligent Investor about?

Who should read The Intelligent Investor

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Do you find yourself staring at your computer for long minutes, unaware of time slipping by? Do you enter a room and suddenly cannot remember why you stepped in the first place? Is it a herculean task for you to sit through ten pages of a book without reaching for your phone? If yes, your focus needs some work and fast.

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