Book The Intelligent Investor

Book - The Intelligent Investor¶

Kindle Highlights:¶

The Intelligent Investor - Revised Edition

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Metadata¶

• Author: Benjamin Graham ^c75c22
• Full Title: The Intelligent Investor - The Definitive Book Of Value Investing
• Category:
• Link:
• ISBN:

Notes¶

• The temperament on Investing is an important factor for every investor and his every investment.
• It is not enough to just make money. It is important to know how to keep it.
• Trying to be a little smarter than the market is very dangerous. Either play the safe game, or educate yourself to expert levels before investing in “unsafe” domains.
• Beating the averages does not seem as easy as it sounds.
• The people who now claim that the next “sure thing” will be health care, or energy, or real estate, or gold, are no more likely to be right in the end than the hypesters of high tech turned out to be. ^c051a3
• In most periods the investor must recognize the existence of a speculative factor in his common-stock holdings. It is his task to keep this component within minor limits, and to be prepared financially and psychologically for adverse results that may be of short or long duration.
• But there are many ways in which speculation may be unintelligent. Of these the foremost are: (1) speculating when you think you are investing; (2) speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it; and (3) risking more money in speculation than you can afford to lose.
• If you want to try your luck at it (“it” being “speculation”) , put aside a portion—the smaller the better—of your capital in a separate fund for this purpose. Never add more money to this account just because the market has gone up and profits are rolling in.
• The defensive investor must confine himself to the shares of important companies with a long record of profitable operations and in strong financial condition.
• To enjoy a reasonable chance for continued better than average results, the investor must follow policies which are (1) inherently sound and promising, and (2) not popular on Wall Street. ^bf09f3
• Abhishek: Trying out old tricks in the new world is not always a good idea. ^myquote1
• By random luck alone, the companies that produce above-average stock returns will have plenty of things in common. But unless those factors cause the stocks to outperforms, they can’t be used to predict future returns.