|Intelligent Investor The, Revised Edition
|List Price: $15.95
Our Price: $9.99
You Save: $5.96 (37%)
Among the library of investment books promising no-fail strategies for riches, Benjamin Graham's classic, The Intelligent Investor, offers no guarantees or gimmicks but overflows with the wisdom at the core of all good portfolio management.
The hallmark of Graham's philosophy is not profit maximization but loss minimization. In this respect, The Intelligent Investor is a book for true investors, not speculators or day traders. He provides, "in a form suitable for the laymen, guidance in adoption and execution of an investment policy" (1). This policy is inherently for the longer term and requires a commitment of effort. Where the speculator follows market trends, the investor uses discipline, research, and his analytical ability to make unpopular but sound investments in bargains relative to current asset value. Graham coaches the investor to develop a rational plan for buying stocks and bonds, and he argues that this plan must be a bulwark against emotional behavior that will always be tempting during abrupt bull and bear markets.
Since it was first published in 1949, Graham's investment guide has sold over a million copies and has been praised by such luminaries as Warren E. Buffet as "the best book on investing ever written." These accolades are well deserved. In its new form--with commentary on each chapter and extensive footnotes prepared by senior Money editor, Jason Zweig--the classic is now updated in light of changes in investment vehicles and market activities since 1972. What remains is a better book. Graham's sage advice, analytical guides, and cautionary tales are still valid for the contemporary investor, and Zweig's commentaries demonstrate the relevance of Graham's principles in light of 1990s and early twenty-first century market trends. --Patrick O'Kelley
The classic text annotated by noted financial journalist Jason Zweig to update Benjamin Graham's timeless wisdom for today's market conditions. Warren Buffet: "By far the best book on investing ever written."
Considered the greatest investment advisor of the twentieth century, Benjamin Graham's philosophy of "value investing" -- which shields investors from substantial error and teaches them to develop long-term strategies -- has made The Intelligent Investor the stock market bible ever since its original publication in 1949. Over the years, market developments have proven the wisdom of Graham's strategies. While preserving the integrity of Graham's original text, PerfectBound's revised edition includes updated commentary, whose perspective incorporates the realities of today's market, draws parallels between Graham's examples and today's financial headlines, and gives readers a more thorough understanding of how to apply Graham's principles.
More than one million hardcovers sold
Now available for the first time in paperback!
The Classic Text Annotated to Update Graham's Timeless Wisdom for Today's Market Conditions
The greatest investment advisor of the twentieth century, Benjamin Graham taught and inspired people worldwide. Graham's philosophy of "value investing" -- which shields investors from substantial error and teaches them to develop long-term strategies -- has made The Intelligent Investor the stock market bible ever since its original publication in 1949.
Over the years, market developments have proven the wisdom of Graham's strategies. While preserving the integrity of Graham's original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today's market, draws parallels between Graham's examples and today's financial headlines, and gives readers a more thorough understanding of how to apply Graham's principles.
Vital and indispensable, this HarperBusiness Essentials edition of The Intelligent Investor is the most important book you will ever read on how to reach your financial goals.
- margin of safety
1. All I learn from this book till now is 'margin of safety'. Keep your investment safe, then profit. About how to keep it safe, I haven't learned from this book yet. I guess I need to read this book again and again. PS, I am not a native English speaker, and there are some many new words in the book, and how Graham speaks English is quite 60s or even older for me.
2. I read the other book 'The Interpretation of Financial Statements' of his. I feel I know more about how to analysis....more info
- A must-read Classic
A must-read for anyone who has a serious interest in investing. While very informative, I do have to admit the prose is a bit stilted and it was a slog in some places. The commentary by Jason Zweig was excellent and gave a much needed change of pace from the text.
While it's true that many of the ideas presented here are now old-hat and can be found in many other books, there is something fascinating and sobering about reading the source. I think it will give any investor a historical dimension to their thinking that will prove valuable to them....more info
- Best book on investments I've ever read
This book changed my life and now I am extremely annoying and quote Benjamin Graham in every conversation.
His growth stock formula works like magic and has helped me to make successful investments:
Intrinsic Value = Current Earnings x (8.5 + 2 x Expected Annual Growth Rate)
Then take Intrinsic Value and divide it by 2 for margin of safety. Forget about DCF or other complicated stuff....more info
- Best Investing Book I've Ever Read---Hands Down
Just finished Intelligent Investor and am starting on his Security Analysis. I.I. is not the easiest read (find a quiet room, have a notepad and paper, and read 1 or 2 chapters a night), but its insight is breathaking--particularly with the financial chaos (and volatility) of recent months. I've long been a fan of Warren Buffet and a Value Investor, and decided to read this book after reading of its influence on his style. If you have any desire to "run your own money" and self-direct your investments, you are a fool to not read this book. If you choose to not do it yourself (and nothing wrong with that choice, it takes ALOT of time), take Graham's prescient advice and simply place your money in stock and bond Index Funds and simply own the entire market. ...more info
- Work in finance? Invest some of your time in Benjamin Graham.
Take a deep breath. If there was ever a time to sit back and revisit some of Benjamin Graham's sage advice, this is it. Just this weekend the Wall Street Journal reported that in the ten years ended 12/31/07, the Dow never saw a 9% trading range within a single day. This year it has happened six times. What would Graham think of today's volatility? I wouldn't be so presumptuous to put words into his mouth, but if I had to guess, I think he would assert that there are pockets of opportunity for the enterprising investor who adheres to Graham's three elements of investing.
While not as academic as Security Analysis, The Intelligent Investor still does a remarkable job of explaining fundamental investment analysis concepts: risk management, valuation, investment versus speculation, margin of safety, and asset allocation, among others. But most impressive is the fact that the man who taught Warren Buffet about investing manages to discuss highly technical concepts in plain English, while leveraging case studies and unusual market events from the first half of the 20th century to add a sense of realism to theory. All of this makes the book an enjoyable and instructive read, and you can take the history lesson as an added bonus.
Another invaluable benefit of this edition is Jason Zweig's commentary throughout the book. After every chapter, Zweig presents a 21st century point of view, relating concepts and historical examples in the text to situations faced by today's companies. Some of the most outrageous examples from current times involve bankrupt and de-listed internet companies, and comments by management, analysts, and members of the financial press that are astonishing in retrospect. Zweig also does an outstanding job in the footnotes - elaborating on Graham's concepts or explaining dated material in the text that today's reader may not understand - from long forgotten stories of financial scandal to observations about Manhattan architecture.
The Intelligent Investor is a must read for anyone thinking of going into finance or currently employed in the industry. In a market where many asset managers seem to have abandoned basic analysis and sound due diligence in pursuit of a short cut to outsized (and ultimately unsustainable) returns, you might want to ask your advisor if he has read any or Graham's works. And if the answer is no, perhaps you should find someone who has.
- Great Book, Very Informative!
This book is well worth the read. It is very detailed and informative about the fluctuations of the market and the effects on its stockholders. The "Intelligent Investor" will teach you how to avoid the most common and critical mistakes of investing in the market. Like I said before, the book is very detailed and is not for the practical beginner. I feel an intelligent understanding of the market and economics is necessary to have before reading this book. Highly Recommended....more info
- Great reference, but only if you're already investing
I am not an experienced investor, and maybe that's why I found I did not understand enough of this book to make it worth my time. I am interested in jumping into the market (as soon as it seems like a reasonable time to do so), and picked up this book as a reference guide to help me get started. But most of the material went over my head.
I think the audience for this book is mainly experienced investors or students studying finance. Indeed, Benjamin Graham taught finance at Columbia University.
Now don't get me wrong, the book is brilliant. I think it probably is, as Warren Buffet claims, "By far the best book on investing ever written." But only if you are already a knowledgable investor. If you're just starting out, pick up a different book....more info
- A Book For Success
Highly recommended. Undestand the basics on it to develop a succesful approach in investments. Follow the principles shown here by many succesful worldwide investors, including Warren Buffet....more info
- intelligent diligence
The Intelligent Investor is a dense, informative, comprehensive, and quite difficult textbook that will reward diligent study with a depth of knowledge that would be hard to find elsewhere.
That Warren Buffet, at the age of nineteen, was able to appreciate the wisdom imparted by Benjamin Graham in this book, is as much a tribute to Buffet's intellect as it is to the clarity of the text.
Originally published in 1950, the book is in its fourth revised edition originally published in 1973, and brought up to date for the twenty-first century by copious footnotes by Jason Zweig.
Highly recommended for the diligent intelligent investor.
- Difficult To Follow, Great Advice
This book is difficult to read without a working knowledge of investment however the advice is solid for new investors and remains a valid reminder for more experienced investors as well. Grahm's work is really the foundation of modern investment schools of thought.
His approach is a simple one of picking solid companies that will not vanish in the next few years automating the investment portfolio to remove the greatest weakness in any investment plan: your own emotions.
Central to his system is the fact that it is very to match the market but hard to consistantly beat it. Indeed he argues that simply putting additional effort into trying to beat the market is often the best way to lose money in the long term. Instead he supports steady, safe investment in what the investor can rely on to be solid investments over the years, especially in undervalued companies and solid bonds, in order to avoid losses which would be impossible to recover from. Rather than running arace that isimpossible for you to win it is better to focus on your own long term goals and refuse to compare your results against that of others. Doing so makes you more willing to tak edangerous risks that ca destroy the valu eof your investments and so long as you reach your goals who cares how well someone else did?...more info
- The Intelligent Investor
Item arrived in good condition. Have not had the time to read it but it is highly recommended....more info
- The Intelligent Investor
You must read the book (written in 1973) and compare with the financial chaos today. If you believed bankers and investors learn from past history think again....more info
- Best Book to Eliminate Wall Street Propaganda
After being a stockbroker, and starting to deal with the market when I was 18, this book makes the best sense of the thinking process for investing. I first read this when my father gave me a copy when I turned 18. It still makes a great deal of sense and is rewritten in areas with up to date examples that are pertinent for today. Get it and read it! But most of all try and practice this discipline....more info
- Lifeline for Investors
The book arrived within a week after I ordered it. Now that's fast!
I've only read a few pages so far, so I can't give a complete evaluation of it. This is an updated book full of information that might lessen a lot of the problems going on in the stock market. With over 600 pages of informative wisdom, Benjamin Graham and Warren Buffett teaches us how to weave in and out of the stock market whirlpool of buying and selling. It may not stop all of the hits to your portfolio, but it might lessen the damage. The book is deep and for me, a very slow read as I try to take in the information. You may not get rich but it should help you survive the gut wrenching entity known as the stock market. Wouldn't hurt to have it in your home or office library. ...more info
- Buy the original, not the Zweig version
As the title of this review indicates, do yourself a favour and buy the original Ben Graham version not this one with Zweig.
Let me start by saying that Warren Buffett had nothing to do with this book, the preface and appendix are extracts from the Financial Analysts Journal and transcripts of a 1984 talk at Columbia University.
The orignal Ben Graham material is mostly intact in each chapter. It is not full of calculations, so it is not difficult to read, but it is a slow and deliberate building of an argument on investing. As such people who are interested in the book for its investment advice will find it logical and sensible. Zwieg however has decided that his own footnotes are far more valuable than Graham's so he has moved Graham's footnotes to the appendix and put his notes under the original text - which is why I say that the chapters are "mostly intact", but not completely.
After each of Graham's chapters, Zweig has included a commentary chapter of his own. These chapters and his footnotes will give you the feeling that "a high school science student was commenting on the PhD work of a professor". The commentary is a weak summary, mostly devoid of any insight and sometimes making statements about what Graham "would have said", which is nothing short of egregious.
Overall, I give Graham's original chapters five stars and Zweig's additions one star, resulting in an average of 3 stars.
This book is a clear example of someone jumping on the bandwagon and trying to associate himself with prominent people like Graham and Buffett. So do yourself a favour and buy the original Graham version, that way you won't feel like Zweig suckered you into buying his book, using Graham's name.
Link to the orignal version: The Intelligent Investor: The Classic Text on Value Investing
- Good for entry but not for exit
The most informative and helpful chapters for me were 11 and 12 where the author discusses how to analyze a company's balance sheet and evaluate earnings. In addition Chapters 13,14 and 17,18 were of special value since comparison of different companies balance sheets was done. Using what I learned from this book I was able to put together a simple litmus test for me to even consider a company. This test requires: (1)An increase of at least 10% year over year in stockholder's equity and (2) an increase of at least 15% year over year in retained earnings.This indicates that the increase in equity is due to earnings that are retained on the balance sheet indicating growth. If a company did not pass these requirement it is dropped from consideration , otherwise further analysis was done.
When to sell on the other hand was not as clear. Selling when the balance sheet deteriorates may be too late since by then ususally the stock has dropped significantly.
You will thus need a book that allows you to objectively decide when to sell.The book Jim Cramer's Real Money: Sane Investing in an Insane World discusses how to determine bottoms and tops in stocks using more classic combinations of technical and fundamental indicators. ...more info
- I wish
This book is great. Even though it covers past history I feel it gives insite into the future. At age 60, I no longer have time on my side. I wish I had read this book when I was 19 years old....more info
- Two books in one - and that's not necessarily a good thing.
This is the 4th edition of Benjamin Graham's landmark book for the investing public, called "The Intelligent Investor." However, it's been "updated" for 2003 by Jason Zweig, a senior editor and writer at CNN/Money, and overall I think this detracts from, rather than improves, the book. I rate Graham's book 5 stars and Zweig's contributions get 3 stars: overall, 4 stars.
First off, there are 3 contributors to this book: Buffett, Graham and Zweig. Warren Buffett, the superinvestor who heads Berkshire Hathaway, is frequently pointed out as one of the world's great investors/stock pickers and also as Ben Graham's star student. Buffett's preface to this book consists of 2 pages: a biographical essay he wrote about Graham in 1976, saying nice things about Graham's personal qualities; and a recommendation to pay particular attention to Chapters 8 and 20. (Buffett, incidentally, cannot be honestly said to have been influenced by this book; his bible was Graham's landmark 1940 textbook for the professional security analyst, called "Security Analysis.") So Buffettologists should know that there will be little to interest them here.
Graham's text is level-headed and sane, and makes for wonderful reading. His distinction between speculators and investors, his way of viewing the markets, and his methodical approach to considering the inherent value of investments is required reading. In my opinion, any non-professional who's interested in investing money could benefit from reading it. Enough said about that.
However, Graham's book makes up only about 1/3 of the present volume. The format is the following: Graham writes a 6 page chapter; Zweig pads that chapter out to 8 pages with giant footnotes; and then Zweig appends a 10-15 page "commentary" to each chapter. Now who exactly is Jason Zweig? I'd never heard of him. His qualifications are very different from Graham's and Buffett's; he is a writer for CNN/Money magazine. I don't consider him to be an investment professional.
Unfortunately, this shows in his writing. Whereas Graham's text is even-handed, methodical, and rational, Zweig comes across as hysterical, emotional, and shrill. His annoying habit of flinging superlatives around (he frequently mentions Buffett as "the greatest investor of all time", and calls Graham the "greatest practical investment thinker of all time") is annoying and adds little to understanding. But much worse is his incessant habit of putting words into Graham's mouth. About 3 or 4 chapters in I began to chafe at this. "Who is this Jason Zweig exactly," I thought, "and how exactly does he claim to know how Graham would have analyzed the tech bubble of 1999-2000?"
As I started paying closer attention, I began to feel that Zweig was making comments - under the guise of "updating" Graham's ideas - that Graham himself would never have endorsed. This bothered me. I feel that, in a way, I was baited with Graham's name into buying a book by Jason Zweig, and it's not the book I thought I was buying.
To be fair, Zweig's commentary is often interesting. His commentary on Chapter 12 has nothing to do with Graham's chapter (on analyzing per-share earnings) at all; rather, it is a scathing, well-presented, easily understood, and fairly detailed analysis of certain examples of accounting irregularities that contributed to the tech blowup and led to Sarbanes-Oxley. (I wouldn't be surprised to learn Zweig had written a book of his own about this topic; if so, I may buy it.) But this only further strengthens the feeling, present always, that Zweig is less interested in explaining Graham's text and more interested in pushing his own agenda and ways of investment thinking. Now for the casual reader who enjoys CNN/Money's style and format as their principal source of investment advice, they may truly enjoy and benefit from this. But I wanted to read Graham's historical text as a whole and interpret it myself; Zweig's constant, harping interpolations severely detracted from my ability to do this.
Finally, there is little in the first 10 chapters of this book that has not become near-dogma for the conservative, value-oriented small investor, repeated ad nauseam in the pages of Money, Forbes, the Motley Fool, and elsewhere. The meat of the book is in the last half, where Graham touches - lightly - on issues that the conservative investor may be interested in valuing, and how to do it right. Frankly I was expecting him to go into more depth on these topics, and I will probably be picking up a copy of either The Interpretation of Financial Statements or Security Analysis (the 1940 edition seems to be the consensus pick) to learn more about his thoughts on these matters....more info
- A great place to start
Everything people have said about how great this book is is true. It's long, and fairly dense subject matter. But if you're serious about learning the smartest and least risky way to invest, this is the book for you. There are no catch-phrases, no acronyms for "proven methods," just straight talk about the methods Graham used in his career.
I came into it with little to no business knowledge, but I felt like everything was explained well enough that even a novice like me could catch up and get something out of it.
Incidentally, a lot of this book fortells doom and gloom for the investor. It is very difficult to beat the market, and it's better to sit in an index fund rather than to do insufficient research. Graham views the day-trading short-term investing as "speculation." While you may pick out a couple of winners and make a lot of money with those couple lucky breaks, the odds are that you will lose ghastly amounts doing this kind of investing. The approach Graham advocates is much more conservative, but a lot smarter too. Ignore the market analysts and the hot tips, and focus on the business, how it's run, and it's soundness as a long-term investment.
It will take years to see if the methods learned will work for me, but they certainly worked for Graham. That and the no-nonsense down-to-earth presentation make me eager to learn more and apply the methods discussed.
Lastly, the 2003 commentary updates the 1972 text wonderfully, and shows that Graham's methods are still applicable today, despite the "new economic model" foretold in the late 1990's. ...more info
- Intelligent investor.
Anyone who chooses to comprehend this classic text will without a doubt expand their knowledge within the universe of value investment techniques. Moreover, in these times of muddled distinction between the investor and speculator, there is no better reason to buy this precious piece of Graham's intellectual genius than now. For myself, this book was truly the first necessary step to bring the perpetual pernicious chaos of what is conveniently termed speculating, to a more lucid order as I learned the true value of Graham's principles of value investing. We can all benefit to learn from this book....more info
- Great book
I read some negative reviews on the book because some didnot like Jason commentary to what Graham said. I think this is unfair criticism because Jason made BEST effort to separate his commentary from original work of Graham....more info
- great in 2008
If you lost big in 2008 it is your own fault. I lost 7.5%, I should have made 10%. READ this book carefully and follow its concepts. It is my litmus test for anybody in the investment field, if they have not read it (and probably 90% have not) I ignore their advice (or consider doing the opposite). read it follow it and you really do not need so called professional investment advice. My definition of investing is buying something for less than you think it is worth, Speculation is buying something today because you think someone will pay more for it later. Be an investor. ...more info
- Changed my mind on Investment Strategies
Bought this book with an eye towards value stock picking. I've read a few others, most notably Peter Lynch, and dabbled with a few thousand while keeping my savings in cash.
Graham and his commentators seem to have no agenda other than what's best for the investor. Before I got to chapter 8 he had convinced me that individual stock picking was a waste of my time. Dollar cost averaging into Index Funds and ETFs while they're cheap, balancing towards bonds when they're not; these are easy "set and forget" strategies and Graham has convinced me that they pay off.
I'll still buy a few individual stocks, just like I still like to shoot craps in Vegas. Take a small amount and be willing to lose it. For the rest of my savings I'll do the hardest thing for a "Defensive" Investor: leave it alone....more info
- Have a Margin of Safety and believe in your analysis!
The Margin of Safety principle is probably the main thing to get from this book. The book gives many comparisons and instructive historical examples, but is a bit lacking in terms of actual advise on how to conduct an analysis, even though the book was supposedly aimed at the layman reader.
I would recommend browsing this book and focus mainly on the two chapters already recommended by Warren Buffett, namely the chapter about stock market fluctuations and the chapter about margin of safety. Concerning the overall philosophy of long-term investing I prefer Phil Fisher's book: Common Stocks and Uncommon profits.
In addition you will also need a proper book on valuation, although Graham does give a very simple valuation formula, I feel it is too focused on earnings (that is, the 'net income' which is often deceptive due to depreciation, new investments, etc.), and I personally prefer a proper Discounted Cash Flow model. Check my other reviews if I should one day post a review for a good book on valuation.
This is the best book I've read on investing and will remain the standard for value investing. ...more info
- Wisdom for the ages
I as a novice should be the last person to review this book by the Father of Stock Market knowledge. I bought this book as a primer to the complex world of Stocks. This is the knowledge what a beginner would like to have before venturing into the erratic waters of stocks.
Read the basics and sail through!!...more info
- Worth it!
The author's suggestions are really good. Without a finance background, I was able to understand quiet a bit of what was said. In some topics, the commentary by Jason Zweig helps understand what Benjamin Graham was trying to convey....more info