Intelligent Investor: Chapter 13

November 20, 2020 by Laxman Sonale 1 Comment

Hello friends, in today’s article, we see chapter 13 of the intelligent investor book. Chapter 13 of the intelligent investor, discuss the four listed companies, see them one by one.

Previous Chapter 12: Click here

Comparison of Four Listed companies:-Intelligent Investor: Chapter 13

Benjamin gram gives us the four companies example to select the good stocks of the company. In these companies, the first and second are the most popular and famous ones. And remaining are the unpopular as well as strong fundamental.

The first and second number of companies is the high price. The third and fourth are the very cheap cause of unpopular.

If you have decided which company we have to choose to get the good stocks. Most of the people take the popular but they don’t think about the fundamentals of the company. (Intelligent Investor: Chapter 13)

You can not buy a company because this is famous, but most people do that. The intelligent investor chooses the company which has the fundamental strength and takes the margin of safety.

The intelligent investor goes against the cloud for the good cause with this satisfying reason.

for this purpose others give us some takeaways, they are as follows.

Some takeaways:-

To high P/E ratio are never justifiable: If some companies are famous, most of the time they have to highest P/E ratio but for the Intelligent investor this is not justifiable.
Prefer value type- investments over glamour type investment: If you want to become an intelligent investor you have to prefer value type investment over glamour type investment. In value type investment you focus on the value of the company and its stocks. and in Glamour type investment include the famous company with people opinion and those company only depends on the crowd.
Don’t pay too much for future prospects in Advance: If you want to be an intelligent investor, so pay price for the past and present performance and not pay for the future. Because the future is not in our hands, most people pay too much for the future. So the intelligent investor is careful.

This is all about chapter 13 of the intelligent investor book

Next Chapter 14

psychology of investing by a value investor