benjamin graham book

hello friends, I am Laxman, we are seeing the Financial book name as The  Intelligent Investor is one the famous book. Let’s start with Intelligent investor: introduction. In This book, Intelligent Investors the introduction gives the characteristics of an Intelligent Investor.

Characteristics of Intelligent Investor:-The Intelligent Investor book: Introduction

• Patient:
• Disciplined
• Emotions Under control
• Don’t care what other people think

the above-mentioned character has to be an Intelligent investor, Most people do not become good investors cause lack of the above quality.

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More Characteristics of Intelligent Investor:-The Intelligent Investor book: Introduction

• Matter of character: if you have a brain is not important. your mindset is important for the company.
• Worst enemy: The worst enemy of the Investor is himself.
• Ordinary people perform well: In the stock market most of the time, common people perform well. As compared to finance people. (The Intelligent Investor book: Introduction)

Some advice for Intelligent Investor from the author:

• Dreadful losses: In the stock market, people forget to ask questions about the stock price. They got the stock at any price that sees on the market. The author says to try to ask how much the price of the stock is.
• Buy stock like Groceries: In buying stock investors have to ask, about the stock price. And buy the stock at a cheap price doing bargaining.

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The author develops some core principles of Intelligent investors.

Core principle:

• Stock is not a ticker symbol: Stocks are the business pieces, they have the ownership interest and you are buying the business.
• The market is like a Pendulum: The market goes in up and down, the intelligent investor has to be patient and buy from the pessimism and sell to the optimistic investor. Be realistic and ignore the market swing.
• Future Value is a function of the Price you pay today:
• Risk of being wrong: In the stock market, You can not eliminate the risk of being wrong. And I choose whatever stock is going too high. this is not possible in the stock market. The stock market is not run on luck.
• Discipline and Courage to ignore the Market: you have to develop Discipline against other people and your stocks and the Courage to Think rationally. (The Intelligent Investor book: Introduction)

The Father of Value Investing is Benjamin Graham. The author gives, the above core principle of Intelligent Investor. In my opinion, These principles are logical. we have to ignore the market mood swing. If you develop this you will be a rich person. If you follow this book, you will get the specific principle, and follow them to avoid stupidity in the market, which helps to make maximum money by compounding principle.

 

Next chapter  1 of The Intelligent Investor book