The Intelligent Investor: The Classic Text on Value Investing (Hardcover)

by Benjamin Graham (Author) "THIS CHAPTER will outline the viewpoints that will be set forth in the remainder of the book..." (more)
Key Phrases: secondary common stocks, leading common stocks, defensive investor, United States Savings Bonds, Wall Street, General Motors (more...)

Editorial Reviews

Review
"If you read just one book on investing during your lifetime, make it this one" (Fortune )

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

"By far the best book on investing ever written." (Warren Buffett )

Product Description

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.

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Product Details

• Hardcover: 304 pages
• Publisher: HarperBusiness (May 3, 2005)
• Language: English
• ISBN-10: 0060752610
• ISBN-13: 978-0060752613
• Product Dimensions: 9.4 x 6.1 x 1.2 inches
• Shipping Weight: 1.5 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars See all reviews (22 customer reviews)
• Amazon.com Sales Rank: #6,995 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

64 of 65 people found the following review helpful:

5.0 out of 5 stars Classic Text Laying Out Solid Principles of Value Investing, June 13, 2005

By	Craig Matteson (Ann Arbor, MI) - See all my reviews (TOP 50 REVIEWER)

When Warren Buffett says that this book is by far the best book ever written on investing one has to take notice. While "The Intelligent Investor" exists in print in several editions, (4th rev edition 0060155477, 2003 rev edition w/ Jason Zweig 0060555661, and some audio book versions), this is a reprint of the original 1949 edition and has several virtues.

It is the original statement of what has come to be called Value Investing. This is a very philosophical book more than a book of techniques or methods of investing. Mr. Graham writes firmly and clearly about where the Investor's interests really lie. He is very hard on brokers, whose profession he considered more of a semi-profession because they have their own interests at heart more than those of their client. He also makes a strong case of about the kinds of returns one can expect from the market versus a company one actively manages. If investors of the 1990s had headed his views on management and their interests not being aligned with those of shareholders a lot less money would have been lost.

In several places he states that shareholders need to act more like owners and should not simply submit to management or let them have free reign with the resources of the company. He also advocated the importance of an independent board of directors rather than a board of management cronies. He rejects the notion of simply selling shares if you don't like the way the company is being managed. That is a dereliction of their duty as owners.

There is also a discussion of a variety of approaches to investing and he contrasts defensive investing or investing using analysis versus speculating. Like Buffett, Graham views investment as a buy and hold for the long term with active influence on the way the company is run. In his view, frequent trading is the road to losses. But at least you make capital gains possible for others.

Obviously, much of the specific information about companies, stock performance, taxes, US Savings Bonds, and such have to be adjusted for. We are more than fifty years later and much has changed. However, the core philosophy of the book is solid, readable, and profound.

The foreword provided in this reprint is by John C. Bogle who founded The Vanguard Group. He made a wonderful career and happy retirements for many based on the principles put forward in this classic text.

21 of 21 people found the following review helpful:

4.0 out of 5 stars One of the true classics, June 19, 2006

By	Befragt (Chicago, IL USA) - See all my reviews

This book is a true classic, and most investors would be well-advised to start with this book as they seek to learn more about the process of making their money work for them. In particular, Graham's book is useful because it recognizes that the universe of potential investments is greater than just stocks - he covers warrants, bonds, etc.

Graham's main point is that investors look at the fundemantals that underly a potential investment to determine the probability of a satisfactory outcome. Hence, Graham does not focus on macroeconomic factors, but instead, he determines the "intrinsic value" for any investment, hopefully buying well below that value, a concept he calls the "margin of safety."

As some reviewers have noted, this book has been criticized by some thinkers as being out of date. In particular, most readers should understand that one of the theories that underlies Graham's philosophy, that a stock is worth the aggregate value of its expected dividends (See John Burr Williams' "Theory of Investment Value"), has been modified somewhat by "discounted cash flow" theories. This means that to some investors, p/e ratios and dividend payouts are de-emphasized somewhat. To me, this does not mean that Graham's theories lose validity, particularly as concerns the notions of intrinsic value and the margin of safety.

As far as I am concerned, Graham's book is most useful when viewed as a theory about how to invest. As such, it is a valuable guide, particularly when read in conjunction with Phil Fisher's book "Common Stocks and Uncommon Profits" and Marty Whitman and Marty Shubik's book "The Aggressive Conservative Investor." Another book that readers of the Intelligent Investor might like would be Dreman's "Contrarian Investing: the Next Generation."

A quick warning to prospective readers: at the outset, reading anything by Graham can be somewhat slow going. I received a copy of this book as a gift years ago, and could not slog through more than 1/2 of it. It was only years later, after learning more about investing and accounting, that I truly came to appreciate the wisdom contained in this book.

Readers who appreciate The Intelligent Investor might also want to try "Security Analysis," which develops the ideas in the Intelligent Investor in much greater detail, and also sets forth more criteria about how to analyze investments (the chapters on financial statements are particularly useful). I have reviewed that book (3rd edition) as well, if anyone is interested.

Although it takes some work to make it through this book, one point that readers should understand is Graham firmly believes that it takes work to invest wisely. He would never encourage investing on tips, momentum investing, etc. A reader would be well-served to apply himself or herself to investing research with the same diligence that reading this book requires, and I don't doubt they will be rewarded as a result.

30 of 32 people found the following review helpful:

4.0 out of 5 stars I Like This One The Best, April 11, 2006

By	James H. McDuffie (Huntsville, Alabama United States) - See all my reviews (REAL NAME)

Out of all the editions of this book commonly available I have to admit liking this one the best. It is the original Graham unfiltered by Warren Buffett or anyone else. There is some great advice in the book but much of it is available elsewhere these days and much of it many experienced investors understand only too well after recent adventures in the stock market. It is worth noting, however, that despite all the hype about Graham's being a buy and hold kind of guy, the book contains a Dow Jones timing strategy that the author thought the public might find useful in timing their sales and purchases of stocks.
Anyhow, those wanting to hear this advice from the horse's mouth will enjoy this book better than the other editions.