Intelligent Investor written by Benjamin Graham is among one of the four books which made Warren Buffett a Billionaire. Anyone who is planning to start a investment career or is already a investor, needs to read this book.
When asked to Warrren Buffett, “What is the best money advice he ever got was ?” It’s no surprise that Buffett turned to his holy bible, The Intelligent Investor, written in 1949 by value god Benjamin Graham –
“Chapters 8 and 20 have been the bedrock of my investing activities for more than 60 years,” he says. “I suggest that all investors read those chapters and reread them every time the market has been especially strong or weak.”
The 1st chapter is also important as it makes you understand the difference between a Investor & a Speculator. The thrills of Wall Street are quite expensive. So understanding the difference between investor and speculator will help you to avoid the thrills which are enjoyed in speculation.
“The intelligent investor is a realist who sells to optimists and buys from pessimists.” – Benjamin Graham
Article from Financial Analysts Journal, November/December 1976, Written by Warren Buffett.
Several years ago Ben Graham, then almost eighty, expressed to a friend the thought that he hoped every day to do “something foolish, something creative and something generous.” The inclusion of that first whimsical goal reflected his knack for pack-aging ideas in a form that avoided any overtones of sermonizing or self-importance. Although his ideas were powerful, their delivery was unfailingly gentle.
Readers of this magazine need no elaboration of his achievements as measured by the standard of creativity. It is rare that the founder of a discipline does not find his work eclipsed in rather short order by successors. But over forty years after publication of the book that brought structure and logic to a disorderly and confused activity, it is difficult to think of possible candidates for even the runner-up position in the field of security analysis.
In an area where much looks foolish within weeks or months after publication, Ben’s principles have remained sound—their value often enhanced and better understood in the wake of financial storms that demolished flimsier intellectual structures. His counsel of soundness brought unfailing rewards to his followers—even to those with natural abilities inferior to more gifted practitioners who stumbled while following counsels of brilliance or fashion.
A remarkable aspect of Ben’s dominance of his professional field was that he achieved it without that narrowness of mental activity that concentrates all effort on a single end. It was, rather, the incidental by-product of an intellect whose breadth almost exceeded definition. Certainly I have never met anyone with a mind of similar scope. Virtually total recall, unending fascination with new knowledge, and an ability to recast it in a form applicable to seemingly unrelated problems made exposure to his thinking in any field a delight.
But his third imperative generosity was where he succeeded beyond all others. I knew Ben as my teacher, my employer, and my friend. In each relationship—just as with all his students, employees, and friends there was an absolutely open-ended, no-scores-kept generosity of ideas, time, and spirit. If clarity of thinking was required, there was no better place to go. And if encouragement or counsel was needed, Ben was there.
Walter Lippmann spoke of men who plant trees that other men will sit under. Ben Graham was such a man.
Let us enhance our Wisdom, by learning from Legends.
In pursuit of Wisdom.