Among the library of investment books Benjamin Graham’s classic, The Intelligent Investor, is one of the most valuable books for people who see themselves as true investors. It offers no guarantees or gimmicks and doesn’t promise no-fail strategies for riches, but overflows the reader with the wisdom at the core of all good portfolio management.

Graham’s philosophy is not profit maximization, but loss minimization. The Intelligent Investor is a book for true investors, not speculators or day traders. The godfather of value investing provides “in a form suitable for the laymen, guidance in adoption and execution of an investment policy”. This policy is inherently for the long term and requires a commitment of effort. While the speculator follows market trends, the intelligent investor uses discipline, research and his analytical ability to make unpopular but sound investments in bargains relative to current asset value. Benjamin Graham coaches both for the defensive and enterprising investor to develop a rational plan for buying stocks and bonds. He argues that his 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. The Intelligent Investor 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, it presents with commentary on each chapter and extensive footnotes prepared by senior Money editor, Jason Zweig. The classic is updated in light of changes in investment vehicles and market activities since 1972 and what remains is a better book.

Graham’s sage advice, analytical guides and cautionary tales are still valid for today’s contemporary investor and Zweig’s commentaries demonstrate the relevance of Graham’s principles in light of 1990s and early twenty-first century market trends.

More information about this book