The book by Benjamin Graham "Reasonable investor" - this is the book that is worth reading to anyone who is interested in the topic of investment. And it's not just that Warren Buffett recommends it.
The full title of the book – "Reasonable investor: a Complete guide to value investing" (The Intelligent Investor The Definitive Book On Value Investing). The author of the book is a professional investor, the founder of the direction, called "Value Investing" - Benjamin Graham.
In this article we will look at the key points mentioned in the book, as well as tell you where it can be downloaded for free in PDF, ePub, FB2 and other formats, as well as listen to an audio book or read online.
The book consists of 20 chapters, only in the US it was reprinted 5 times. The book was first published in 1949. Most of the examples relate to the economic situation in the United States, particularly during the great Depression. In addition, the book contains the author's comments and applications explaining the essence of the described phenomena.
Download free book "the Intelligent investor" by Benjamin Graham
Below are the links where you can download the book for free. If you want a paper version of the publication, there is a link where you can buy it.
- Free download book "Reasonable investor" in PDF
- Buy the book "the Intelligent investor»
Listen the audiobook online
Key points of the book "the Intelligent investor»
The book contains important fundamental thoughts that are the main principles for any investor. Basic idea:
- You can't mix investment with speculation. This applies not only to the trading account, but also thinking, because it is completely different directions.
- There are no short-term investors. Investing for the long term is the only way. Those who cannot resist the temptation to sell their shares for at least a few months will inevitably fail.
- The more unpredictable the market, the more investment will flourish.
- Safety margin – it is important to remember these two words, they determine the success of the investment.
- It is important to take into account everything for which and how much you have to pay, as well as to correlate costs with the expected benefits.
- Failure to try to predict the future and hyperactive actions – these qualities should have every reasonable investor.
The book also describes each component in the mechanism of work with investments: the rate of inflation, diversification and more. The guidance of a reasonable investor is given.
Following the principles specified in the book will provide a stable income on the stock market. The book will help to learn a reasonable approach to the choice of entry and exit points. In other words, it will make you an investor, not a speculator.
Benjamin Graham used in the book the famous allegory "Mr. market". Its essence is to ignore the excessive volatility of the market master. The investor should benefit from market misunderstandings rather than participate in them. That is, you need to focus on the real performance of the company and receive dividends than to be mistaken, analyzing the actions in the market, no matter how plausible they may be.
The author began his career in 1914 at the brokerage office of Newburger, Henderson & Loeb, where he was a messenger with a salary of $12 per week. In addition to the direct duties of the messenger, he had to follow the quotations of securities and mark them on the Board. By 1919, Benjamin Graham's income was already more than $600 thousand.
After 7 years, Graham and his partner Jerome Newman organized Graham – Newman investment company. By the way, it is in this company got a young Warren Buffett.
At the same time, Graham taught Finance at Columbia University.
Since 1934, Benjamin Graham has authored the following books:
- Analysis of securities (Security Analysis) – 1934.
- Analysis of financial statements (The Interpretation of Financial Statements) – 1937.
- Reasonable investor (The Intelligent Investor) – 1949.
Despite years of publication, the ideas in the books, still relevant today.
For many, these books are "Bibles".
Warren Buffett has repeatedly said that the book "Reasonable investor" is the most useful book in his life. This book is also recommended by Walter Schloss, Irving Kahn and other famous people.