The Intelligent Investor: The
Definitive Book on Value Investing. A Book of Practical Counsel
(Revised Edition) (Paperback)
by Benjamin Graham (Author), Jason Zweig (Author), Warren E.
Buffett (Collaborator)
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
Review
"The wider Mr. Graham’s gospel spreads, the more fairly the
market will deal with its public." -- Barron's
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