“An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. The reasoning being that one cannot be knowledgeable about the stock market until one knows how they have performed under varying conditions – some of which a reader will likely come across. Accordingly, the book spends considerable time looking back at the historical patterns of financial markets stretching decades. Mr Graham invokes the famous statement – a bit cheekily perhaps – “Those who do not remember the past are doomed to repeat it”. The author makes it clear that the book is meant only for investors and not meant for speculators or traders. The book focuses more on investment principles and investor attitude than in the techniques of analysing securities which he covered extensively in his other book, Securities Analysis.
The purpose of the book as put forth by the author himself is to serve as an introduction in a form suitable for the layman, the adoption and execution of an investment principle and strategy.
“…many investors, when asked to describe their investment philosophies, describe themselves as value investors, not just because of its winning track record, but also because of its intellectual and academic backing. “ – Aswath Damodaran, Professor of Finance at the Stern School of Business at NYU What does the book aim to achieve? Its principles are as valid and relevant today as it ever were ever since its first publication in 1949. The book is religiously read edition after edition, is cited and practised by legions of fanatic value investors the globe over.
The Intelligent Investor by Benjamin Graham is the definitive book on value investing.
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