The Intelligent Investor, Rev. Ed
The Intelligent Investor, Rev. Ed

The Intelligent Investor, Rev. Ed

Table of Contents

To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework. (Location 125)

Tags: investment

Note: .investment investin requires a sound framework and control of your emotions

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.” (Location 137)

A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price. (Location 191)

Tags: stock

Note: .stock a stock has an underlying value that does not depend on its share price

“Those who do not remember the past are condemned to repeat it.” (Location 219)

Tags: history

Note: .history study the past so we dont repeat the same mistakes

the principle of regular monthly purchases of strong common stocks through thick and thin—a program known as “dollar-cost averaging.” (Location 233)

Tags: dollarcostaveraging, investing

Note: .investing .dollarcostaveraging continuely buy stocks over a long period of time

Obvious prospects for physical growth in a business do not translate into obvious profits for investors. The experts do not have dependable ways of selecting and concentrating on the most promising companies in the most promising industries. (Location 311)

Tags: investing

Note: .investing

In an article in a women’s magazine many years ago we advised the readers to buy their stocks as they bought their groceries, not as they bought their perfume. The really dreadful losses of the past few years (and on many similar occasions before) were realized in those common-stock issues where the buyer forgot to ask “How much?” (Location 325)

Tags: value, investing

Note: .investing .value shop for value

this book will teach you three powerful lessons: how you can minimize the odds of suffering irreversible losses; how you can maximize the chances of achieving sustainable gains; how you can control the self-defeating behavior that keeps most investors from reaching their full potential. (Location 373)

Note: Minimise odds of losing, maximise chance of sustainable returns and avoid self defeating behaviour

back in the spring of 1720, Sir Isaac Newton owned shares in the South Sea Company, the hottest stock in England. Sensing that the market was getting out of hand, the great physicist muttered that he “could calculate the motions of the heavenly bodies, but not the madness of the people.” Newton dumped his South Sea shares, pocketing a 100% profit totaling £7,000. But just months later, swept up in the wild enthusiasm of the market, Newton jumped back in at a much higher price—and lost £20,000 (or more than $3 million in today’s money). For the rest of his life, he forbade anyone to speak the words “South Sea” in his presence. 4 Sir Isaac Newton was one of the most intelligent people who ever lived, as most of us would define intelligence. But, in Graham’s terms, Newton was far from an intelligent investor. By letting the roar of the crowd override his own judgment, the world’s greatest scientist acted like a fool. (Location 394)

Tags: newton

Note: .newton doing well in the stock market is not about being very intelligent

The intelligent investor realizes that stocks become more risky, not less, as their prices rise—and less risky, not more, as their prices fall. The intelligent investor dreads a bull market, since it makes stocks more costly to buy. And conversely (so long as you keep enough cash on hand to meet your spending needs), you should welcome a bear market, since it puts stocks back on sale. (Location 453)

Chapter 1 Investment versus Speculation: Results to Be Expected by the Intelligent Investor

“An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” (Location 467)