The Intelligent Investor: A Book of Practical Counsel [Hardcover]

Benjamin Graham (Author), Warren E. Buffett (Preface, Introduction)

Book Description

Publication Date: January 22, 1986

This guide to the stockmarket offers principles proven by the success of investors for over 35 years. Its main objective in its philosophy of "value investing" is to protect the investor against the areas of possible error and to develop policies which are rational. It takes account of both the defensive and enterprising investor, outlining the principles of stock selection for each, and stressing the advantages of a simple portfolio policy. It features the use of comparisons of pairs of common stocks to bring out their elements of strength and weakness, and also the construction of investment portfolios designed to meet specific requirements of quality and price attractiveness.

Editorial Reviews

Review

"The wider Mr. Graham’s gospel spreads, the more fairly the market will deal with its public." -- Barron's

About the Author

Benjamin Graham, the father of value investing, was perhaps the most influential investment figure of all time.His work laid the foundation of modern security analysis, and two of his books,The Intelligent Investor (1949) and Security Analysis(1934), are investment classics that remain bestsellers to this day.His Life and work have been inspiration for many of today's most successful investors, including Warren Buffett, Michael F. Price, and John Neff.

Product Details

• Hardcover: 340 pages
• Publisher: Harper & Row Publishers; 4th Revised edition (January 22, 1986)
• Language: English
• ISBN-10: 0060155477
• ISBN-13: 978-0060155476
• Product Dimensions: 8.1 x 5.8 x 1.4 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 4.5 out of 5 stars  See all reviews (87 customer reviews)
• Amazon Best Sellers Rank: #8,352 in Books (See Top 100 in Books)
  • #41 in Books > Business & Investing > Investing > Introduction
  • #86 in Books > Business & Investing > Popular Economics

Most Helpful Customer Reviews

102 of 111 people found the following review helpful

3.0 out of 5 stars Can't Say I Was Wild About This Book October 1, 1999

By A Customer

Format:Hardcover

"The Intelligent Investor" is good at convincing you not to pay too much for a stock. However, as Mary Buffett points out in her book "Buffettology", Warren Buffett gradually ran into problems with a pure Benjamin Graham approach to investing. Graham would buy ANY stock if it were cheap enough, hoping the price would soon rise. He often found that many cheap stocks never went up. He also incurred lots of capital gains taxes which Warren Buffett likes to avoid. It sounds like Buffett is more influenced by Philip Fisher now than by Ben Graham. I would recommend reading "Buffettology" before "The Intelligent Investor". After reading "Buffettology", then start reading books by Ben Graham, Philip Fisher, and John Burr Williams.

51 of 54 people found the following review helpful

5.0 out of 5 stars Valuation Primer & A History Lesson May 17, 2000

By S. Schneider

Format:Hardcover

In the late 1960s, a high-flying mutual fund manager remarked on a talk show that "the trouble with old Ben Graham is he just doesn't understand today's market." That particular time was one of somewhat extreme valuations, especially in technology issues. Ben Graham was writing the 4th edition of this book at about that time. The parallels to our market today, as described by Graham, make for fascinating reading --whether or not one reads THE INTELLIGENT INVESTOR to become an unadulterated Grahamian. Although most readers come to this book to learn how to pick stocks with value, I think the historical perspective interwoven amongst the numbers makes it an especially worthwhile read.

Some readers complain about how dated the text is, but Ben Graham was writing for an audience witnessing the equity market hot-air bubble of the late sixties. The pop that followed in 1973 was no accident. Just recognizing the parallels between the high-flyers of that decade and those of our current market make this worthwhile reading. Likewise, readers who assimilate any of Graham's notions of value will heretofore comprehend Benjamin Graham's own inclination to plunge into the market when most investors were leaving it for dead in 1974.

Warren Buffett's lecture in the appendix ("The Superinvestors of Graham & Doddsville"), both a nice encapsulation of value investing and a refutation of the efficient market theory, is itself worth the price of the book. But there is much else in here that is worthwhile to the patient reader, who will likely return to Graham's ideas time and again in his/her investment career.

113 of 126 people found the following review helpful

5.0 out of 5 stars This Should Be Your First Guide to Investing March 18, 1999

By Myrna Vance ([e-mail])

Format:Hardcover

This is the classic investing guide, made more famous by the success of Warren Buffet as he continues to follow Graham's thinking. Often, more money can be made in value investing than in today's popular day trading or in becoming a momentum player. The most valuable lesson I learned the first time I read this book is that minimizing losses is more important than trying to make large gains. Sometimes it is hard to sit and let your assets accumulate, but that is one of the principles of this book. Another is to learn how to evaluate and analyze a company to build the right portfolio, and to build a portfolio with only stocks that you really understand and a number that you can follow. There are also lessons here about when to buy. THE INTELLIGENT INVESTOR should be your first guide to investing, and your last as you review the principles often. It is also important to learn how to recognize companies that will continue to build value. For example, look for logical add-on businesses, or easy ways to expand through the same distribution channel, or serve the customer better. Another approach is to look for companies that are doing the right things. Look for companies that understand the importance of measuring and measure everything they can in the critical activities for success, go beyond today's best practices to develop both the future best practices and the ideal best practices, and then continually repeat the process for even better ideas. You can read more about this process in THE 2,000 PERCENT SOLUTION, a new book by Donald Mitchell, Carol Coles and Robert Metz that describes how to avoid the common stalls and continuously stay ahead of others.