Benjamin Graham is considered the father of "Value Investing". The most successful investor of the 20th century, Warren Buffet, learned from him the tools and taught his investment strategies in accordance with his plans. Graham believes that investment decisions in principle are not very complicated. Everyone the necessary information can easily obtain from published company data and interpret the cardinal mistake committing to his opinion, many investors it is speculating rather than investing He understands..: Investment: decisions based on sound analysis and promises safety of principal and an adequate return. Speculation: The opposite of this, namely investment decisions, which are usually based on past developments and rumors or chasing the trend and take safety into consideration. In the book, the author describes in great detail what criteria it applies in selecting securities. His basic idea is to only buy "cheap" stocks Sounds to a very simple idea and yet is also very obvious -. Why would you need to read a book about quite simply because, as most investors do not follow? keep this principle, often buy risky and speculative securities and thus fall on the nose. Graham hypothesizes that the average investor from rumors or verhergesagten events can not take advantage, as this information known to other market participants, and the effects usually already are reflected in the courses if the information is known. No good hair leaves Graham in this regard to stock analysts that rather than his opinion always chasing the trend, the simplest profitability to calculate indicators of a company. The most important basis of an investment decision is for him the value of the company in relation to its price. At length will be explained as the reader detects whether a company is cheap or not, and what pitfalls must be avoided here. Other chapters deal with the idea of portfolio strategy as well as the evaluation and selection of bonds. The first version of Intelligent Investors appeared already in 1949. So it's not a modern book, yet many of the established theories seem downright visionary. His description of a speculative bubble reads like a summary of the years of the New Economy boom, only they were written decades earlier. The reasoning is logical and supported with numerous examples. Very interesting example of the historical course of the Wall Street during the last century, is based on its clear to see that happen again, the cyclical movements of the stock markets on a regular basis and Graham's theories have now not lost its significance. Warren Buffet, who was so even today is based on value investing approach as the second richest man in the United States. The book is easy to understand and the stock market crash damaged reader wonders why in the world he has not read it three years earlier. A standard work for every shareholder helps to avoid costly mistakes in the stock market. Thoroughly recommended.
