The Intelligent Investor

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name = The Intelligent Investor
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image_caption = 2003 edition, updated by Jason Zweig
author = Benjamin Graham
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country = USA
language = English
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subject = Finance
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pub_date = 1949
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"The Intelligent Investor" by Benjamin Graham, first published in 1949, is a widely acclaimed book on value investing, an investment approach Graham began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd. Famous investor and billionaire Warren Buffett describes it as "by far the best book on investing ever written" [cite book
last = Graham
first = Benjamin
authorlink = Benjamin Graham
coauthors = Jason Zweig
editor =
others = Warren E. Buffett (collaborator)
title = The Intelligent Investor
origdate =
origyear = 1949
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edition = 2003 edition
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date = 2003-07-08
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publisher = HarperCollins
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isbn = 0-06-055566-1
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pages = front cover
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Mr. Market

Graham's favorite allegory is that of Mr. Market, an obliging fellow who turns up every day at the share holder's door offering to buy or sell his shares at a different price. Often, the price quoted by Mr. Market seems plausible, but sometimes it is ridiculous. The investor is free to either agree with his quoted price and trade with him, or ignore him completely. Mr. Market doesn't mind this, and will be back the following day to quote another price.

The point of this anecdote is that the investor should not regard the whims of Mr. Market as a determining factor in the value of the shares the investor owns. He should profit from market folly rather than participate in it. The investor is advised to concentrate on the real life performance of his companies and receiving dividends, rather than be too concerned with Mr. Market's often irrational behaviour.

Editions

Since the work was published in 1949 Graham revised it several times, most recently in 1971/72. This was published in 1973 as the "Fourth Revised Edition" ISBN 0-06-015547-7, and it included a Preface and Appendixes by Warren Buffett. Graham died in 1976. Commentaries and new footnotes were added to the fourth edition by Jason Zweig, and this new revision was published in 2003. [cite book
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authorlink = Benjamin Graham
coauthors = Jason Zweig
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others = Warren E. Buffett (collaborator)
title = The Intelligent Investor
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edition = 2003 edition
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date = 2003-07-08
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publisher = HarperCollins
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language =
isbn = 0-06-055566-1
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pages = page vii
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*"The Intelligent Investor" (Re-issue of the 1949 edition) by Benjamin Graham. Collins, 2005, 269 pages. ISBN 0-06-075261-0.
*"The Intelligent Investor" (Revised 1973 edition) by Benjamin Graham and Jason Zweig. HarperBusiness Essentials, 2003, 640 pages. ISBN 0-06-055566-1.

Book contents

2003 edition by Benjamin Graham and Jason Zweig

* Preface to the Fourth Edition, by Warren E. Buffett
* A Note About Benjamin Graham, by Jason Zweig
* Introduction: What This Book Expects to Accomplish
* Commentary on the Introduction
#Investment versus Speculation: Results to Be Expected by the Intelligent Investor
#The Investor and Inflation
#A Century of Stock Market History: The Level of Stock Market Prices in Early 1972
#General Portfolio Policy: The Defensive Investor
#The Defensive Investor and Common Stocks
#Portfolio Policy for the Enterprising Investor: Negative Approach
#Portfolio Policy for the Enterprising Investor: The Positive Side
#The Investor and Market Fluctuations
#Investing in Investment Funds
#The Investor and His Advisers
#Security Analysis for the Lay Investor: General Approach
#Things to Consider About Per-Share Earnings
#A Comparison of Four Listed Companies
#Stock Selection for the Defensive Investor
#Stock Selection for the Enterprising Investor
#Convertible Issues and Warrants
#Four Extremely Instructive Case Histories
#A Comparison of Eight Pairs of Companies
#Shareholders and Managements: Dividend Policy
#"Margin of Safety" as the Central Concept of Investment
* Postscript
* Commentary on Postscript
* Appendixes
# [http://www.valueinvesting.de/en/superinvestors.htm The Superinvestors of Graham-and-Doddsville]
#Important Rules Concerning Taxability of Investment Income and Security Transactions (in 1972)
#The Basics of Investment Taxation (Updated as of 2003)
#The New Speculation in Common Stocks
#A Case History: Aetna Maintenance Co.
#Tax Accounting for NVF's Acquisition of Sharon Steel Shares
#Technological Companies as Investments
* Endnotes
* Acknowledgments from Jason Zweig
* Index

See also

* Security Analysis (book)
* Value investing
* Benjamin Graham
* Warren Buffett
* David Dodd
* John Burr Williams' "The Theory of Investment Value"

References

External links

* [http://www.frankvoisin.com/?p=4 FrankVoisin.com] - Summary and Review Chapter-by-Chapter
* [http://www.ozres.com/books/Value_Investing.htm OzRes.com] - Brief summary in progress
* [http://www.asiaing.com/the-intelligent-investor.html Asiaing.com] - You can download an excerpt of the book in pdf format