Intelligent Investor: Chapter 17

hello friends, in today’s article we see chapter 17 of the intelligent investor book. In this chapter 17 benjamin gram give four extremely instructive case studies of the company. so let’s see chapter 17 of the intelligent investors in detail.

Previous Chapter 16

Four Extremely Instructive Case Studies:-Intelligent Investor: Chapter 17

Benjamin gram gives the four company case studies which can help you to identify good stocks. let’s see

Company one: This company is a big joint, and well in trend, and everyone is attracted to this company. Everyone thinks they get a good return from it and that is why its company goes overpriced. So the author gives the advice to stay away from it.
Company second: This company is taking the debt to acquire the other company. so check for the company’s financial statement. and this type of company is a big joint but they taking dept. So stay away from it.
Company third: This company is also taking the dept to beat the big company which has a competitive advantage, so stay away from it.
Company four: This company is starting phase and starts with its IPO and they get the overprice for their promises. They don’t have any experience but people start buying company shares by believing in the company’s promises. So stay away from this company also. (Intelligent Investor: Chapter 17)

so moral of the story is as follows

Moral of the story:

Do the elementary job of going through annual reports extensively.
people are speculative, so don’t go with him, because they don’t do any analysis and if sometimes yes then they only look at an overview of financial statements.
Do research like compare each other between company.

so doing any investment do whole research like buying any refrigerator for your home.

This is all about chapter 17 of the intelligent investor book.

Previous Chapter: Click here

for value investor