The Intelligent Investor Book Summary - The Intelligent Investor Book explained in key points
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The Intelligent Investor summary

Benjamin Graham and comments by Jason Zweig

The Definitive Book on Value Investing

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21 mins

Brief summary

The Intelligent Investor by Benjamin Graham is a classic investment guide that offers timeless wisdom, strategies, and principles for successful, long-term investing.
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    The Intelligent Investor
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    Intelligent investors don’t rush in; they take time to rationally examine a company’s long-term value.

    There is a lot of money to be made through investing. But also a lot to lose. Finance history is full of stories of investors like Warren Buffett, who, by investing in the right companies, earned vast amounts of money in return. There are just as many — if not more — stories of misfortune, in which people place the wrong bets and end up losing it all.

    So, we have to ask ourselves: is investment really worth the risk? The answer is yes, it can be, so long as you follow the strategy of intelligent investing.

    Intelligent investors use thorough analyses in order to secure safe and steady returns. This is very different from speculating, in which investors focus on short-term gains made possible by market fluctuations. Speculations are thus very risky, simply because nobody can predict the future.

    For example, a speculator might hear a rumor that Apple will soon release a new hit product, and would then be motivated to buy lots of Apple stocks. If she’s lucky, then this knowledge will pay off and she’ll make money. If she’s unlucky and the rumor proves wrong, then she stands to lose a lot.

    In contrast, intelligent investors focus on pricing. These investors buy stock only when its price is below its intrinsic value, i.e., its value as it relates to a company’s propensity for growth.

    As an intelligent investor, you’ll buy a stock only if you believe there is a probable margin between what you pay and what you will earn as the company grows. Think of this margin of safety the same way you would if you were out shopping. An expensive dress, for example, is only worth it if you end up keeping it for a while. If the quality is insufficient, then you might as well buy a cheaper one that lasts for the same amount of time.

    The life of an intelligent investor isn’t very exciting, but that’s not the point. The point is the profit.

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    What is The Intelligent Investor about?

    The Intelligent Investor offers sound advice on investing from a trustworthy source – Benjamin Graham, an investor who flourished after the financial crash of 1929. Having learned from his own mistakes, the author lays out exactly what it takes to become a successful investor in any environment.

    The Intelligent Investor Review

    The Intelligent Investor (1949) is a must-read for anyone looking to build wealth through smart investing. Here's why this book stands out:

    • It provides a solid foundation in value investing principles, helping readers make informed decisions.
    • The book emphasizes the importance of a long-term perspective for successful investing.
    • Its clear, concise explanations make complex investment concepts easily understandable.

    Unlock the secrets of successful investing by picking up a copy of The Intelligent Investor today.

    Best quote from The Intelligent Investor

    Indeed, the investors chief problem — and even his worst enemy — is likely to be himself.

    —Benjamin Graham and comments by Jason Zweig
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    Who should read The Intelligent Investor?

    • Anyone who wants to invest, but doesn’t want to risk losing it all
    • Investors who want to improve their performance
    • Anyone who wants be able to control his emotions in order to put all energy into investing

    About the Author

    Benjamin Graham (1884-1976) began his career as investor in 1914, after which he had to deal with substantial losses during the economic crash in the 1920s. His book The Intelligent Investor is a compilations of the lessons he learned as a young investor.

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    The Intelligent Investor FAQs 

    What is the main message of The Intelligent Investor?

    The Intelligent Investor teaches timeless value investing principles for long-term success in the stock market.

    How long does it take to read The Intelligent Investor?

    Reading The Intelligent Investor typically takes around 15 hours. The Blinkist summary can be read in just 15 minutes.

    Is The Intelligent Investor a good book? Is it worth reading?

    The Intelligent Investor is a highly recommended classic that offers valuable investment insights and strategies.

    Who is the author of The Intelligent Investor?

    The author of The Intelligent Investor is Benjamin Graham.

    How many chapters are in The Intelligent Investor?

    The Intelligent Investor by Benjamin Graham has 20 chapters. The chapters are:

    1. Investment versus Speculation
    2. The Investor and Inflation
    3. A Century of Stock Market History
    4. General Portfolio Policy
    5. The Defensive Investor and Common Stocks
    6. Portfolio Policy for the Enterprising Investor
    7. The Investor and Market Fluctuations
    8. The Investor and Market Analysis
    9. The Investor and the Advisers
    10. Security Analysis for the Lay Investor
    11. Things to Consider about Per-Share Earnings
    12. A Comparison of Four Listed Companies
    13. Stock Selection for the Defensive Investor
    14. Stock Selection for the Enterprising Investor
    15. Convertible Issues and Warrants
    16. Four Extremely Instructive Case Histories
    17. A Comparison of Eight Pairs of Companies
    18. Shareholders and Managements
    19. Margin of Safety
    20. Conclusion

    How many pages are in The Intelligent Investor?

    The Intelligent Investor has 623 pages.

    When was The Intelligent Investor published?

    The Intelligent Investor was first published in 1949.

    What to read after The Intelligent Investor?

    If you're wondering what to read next after The Intelligent Investor, here are some recommendations we suggest:
    • The Richest Man in Babylon by George S. Clason
    • Millennial Money by Patrick O’Shaughnessy
    • The Little Book of Common Sense Investing by John C. Bogle
    • The Psychology of Money by Morgan Housel
    • The Warren Buffett Way by Robert G. Hagstrom
    • Rich Dad, Poor Dad by Robert T. Kiyosaki
    • The 4-Hour Workweek by Tim Ferriss
    • The Education of a Value Investor by Guy Spier
    • Think and Grow Rich by Napoleon Hill
    • The Most Important Thing by Howard Marks