The Intelligent Investor by Benjamin Graham Book Review


The Intelligent Investor

is the book that started it all. Written by the godfather of investing, Benjamin Graham, this book gave birth to an entire class of value investors.

Graham was Warren Buffett's mentor, and a major reason for the tremendous start Buffett had as an investor.

This is the first book to read if you are serious about learning to invest for yourself.

Warren has said that his favorite chapter, and the one he considers most important, is the chapter on Mr. Market, where Graham anthropomorphizes the stock market into a human being he names "Mr. Market". This character is manic-depressive and is always either exuberant or moping around. Graham uses this device to disconnect the reader from the ups and downs of the market by explaining the nature of the market as unbalanced, just like a real human being.

There are a few out-dated concepts in this book and one should not take every concept or recommendation literally. For example, there is some discussion about having a balance of stocks and bonds. That advice would be sound in a normal market, but not in one where the 20 year bond bull market has come to an end and interest rates are rising (causing bond prices to fall).

About the Author

Jeremy Scott Bailey is an investor, author, entrepreneur and host of the "What Works In Investing?" podcast now available on iTunes. He is founder and Chief Investment Officer of Burgeón Group, Inc. an investment advisory firm that provides portfolio management services to families and individuals.

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