The Intelligent Investor (Book Review)

Tue May 22, 2007 5:50:53 pm by Dustin
Filed under Book Review, Finance, Fun, General, Household, Payroll, a little about life

Full Title: The Intelligent Investor by Benjamin Graham
ISBN: 0-06-055566-1
Get it cheap.

Summary: This book starts out with some history of investing. Not so much, ‘in 1842 the first investor was born’ kind of history, but rather some general principles which every investor should know and use regardless of their goals. This includes investing versus speculation and diversifying ones portfolio. The meat of the information comes in the second half of the book where Graham explains how to whittle the thousands of securities out there into a dozen or a few hundred. From this point, he explains how to take this list of good companies and break them down into a dozen or so great companies. He then spends a few chapters explaining how to break it down into just a handful which are to be successful over the next 10 to 20 years. With this advice, Graham says anybody can invest and be successful at it.

What I thought:

By far the best book on investing ever written.
– Warren Buffet

It says that quote right on the cover, and if an investment book is good enough for the Oracle of Omaha to see his passion and become the best investor in the world, it is good enough for me.

This book actually filled the gap I was looking for in an investment book. When I was in school I learned how to read all those fancy money statements some people like to call financials. What I did not learn is how to take the thousands of companies out there and bring the number to something a bit more manageable and then compare the smaller list to find an investment which will let me retire in 20 years. This is a must read for anybody who wants to be in control of his or her finances and does not want to be stuck in the game of just waiting for the 401k to make them wealthy.

  1. Jeff

    Interesting. The book comes highly endorsed by Buffet and Digmann. I have always been impressed by Warren Buffet’s investment returns.

    I’m very interested to know more. It sounds like more of a micromanagement approach to investing than I usually try (I like mutual funds), but if that’s what it takes. Then that’s what it takes.