The Intelligent Investor

The Intelligent Investor - The Definitive Book on Value Investing - A Comprehensive Summary

The first chapter of this book is about two main different types of investors. The first type of an investor is ‘defensive investor’. Those investors invest mostly in high-grade bonds and stable common stocks. But contrary to them, ‘aggressive investors’ like to invest in active financial markets. Because of that, they expect higher returns than defensive investors.
Back in 1934, the author tried to make a clear difference between investing and speculating. He tried to do that by defining an investment as something that will promote the safety of the principal and an adequate return. Contrary to that, speculation will fail to do to both.
In the first chapter of his book, Graham explains the actual ‘purpose’ of his book and what readers should know during and after they finish reading the book. He wants the readers to get a clear idea of the risks inherent in ownership to common stocks, and he also wants his readers to understand clearly that the opportunities for profit are thus inseparable from risks. This means that there is no such thing as a ‘pure investment’ policy because there will always be at least some slight speculation involved in the whole process.
However, even though there is always at least some degree of speculation, readers should also know that speculations can be greatly reduced by something that the author calls as the ‘intelligent speculation’. This means that readers should...

To be continued...

Here is a Preview of What You Will Get:

⁃ A Full Book Summary

⁃ An Analysis

⁃ Fun quizzes

⁃ Quiz Answers

⁃ Etc.

Get a copy of this summary and learn about the book.