The İntelligent İnvestor By Benjamin Graham

A quick summary with 7 key thoughts

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“The Intelligent Investor” by Benjamin Graham is a timeless classic in investing. It offers valuable insights into the principles of value investing and sound financial decision-making.

Graham emphasizes the importance of adopting a disciplined and patient approach to investing. He introduces the concept of Mr Market, a fictional character representing the stock market’s irrational and emotional behaviour, encouraging investors to focus on long-term value rather than short-term market fluctuations.

The book distinguishes between two types of investors: the defensive investor and the enterprising investor. The defensive investor prefers a more conservative approach, seeking stable and established companies. In contrast, the enterprising investor is willing to conduct in-depth analysis and take calculated risks for higher returns.

One of the key concepts Graham introduces is the difference between investing and speculation. He emphasizes that investors should approach the stock market as a business owner rather than a gambler. This involves analyzing the fundamentals of a company, such as its earnings, assets, and market position, before making investment decisions.