Chuck Sears The Intelligent Investor by Benjamin Graham is a classic guide to value investing, emphasizing the importance of a disciplined, long-term approach to building wealth. Graham distinguishes between investment and speculation, advocating for strategies that minimize risk and maximize sustainable returns.
Key principles include:
- Margin of Safety: Invest in assets priced below their intrinsic value to reduce risk.
- Value Investing: Focus on the fundamental worth of stocks rather than market trends.
- Emotional Discipline: Avoid impulsive decisions driven by market fluctuations.
- Diversification: Spread investments across various assets to mitigate risk.
Graham also highlights the psychological aspects of investing, urging readers to remain rational and patient. His teachings have influenced generations of investors, including Warren Buffett, who considers this book essential reading.
You can get The Intelligent Investor by Benjamin Graham (book or audio) here.
