The Intelligent Investor Rev Ed.

Introduction

Benjamin Graham's "The Intelligent Investor Rev Ed." is a cornerstone text in value investing, offering timeless wisdom for navigating financial markets. This revised edition, updated with commentary by Jason Zweig, maintains Graham's core principles while providing context for modern investors. The book emphasizes long-term strategies, emotional discipline, and thorough analysis to achieve sustainable investment success.

Chapter Summaries

1. Investment versus Speculation: Results to Be Expected by the Intelligent Investor Distinguishes between investment and speculation, setting the foundation for Graham's philosophy of intelligent investing based on thorough analysis and emotional control.
2. The Investor and Inflation Discusses the impact of inflation on investments and strategies to protect purchasing power over time.
3. A Century of Stock Market History: The Level of Stock Market Prices in Early 1972 Provides historical context for stock market performance, demonstrating the cyclical nature of markets and the importance of a long-term perspective.
4. General Portfolio Policy: The Defensive Investor Outlines strategies for conservative investors, focusing on asset allocation and the concept of dollar-cost averaging.
5. The Defensive Investor and Common Stocks Offers guidelines for stock selection for defensive investors, emphasizing large, prominent, and conservatively financed companies.
6. Portfolio Policy for the Enterprising Investor: Negative Approach Discusses strategies for more active investors, warning against common pitfalls and speculative practices.
7. Portfolio Policy for the Enterprising Investor: The Positive Side Presents methods for finding undervalued securities, including the analysis of growth stocks and special situations.
8. The Investor and Market Fluctuations Introduces the concept of Mr. Market and teaches investors how to take advantage of market volatility rather than being victimized by it.
9. Investing in Investment Funds Evaluates the pros and cons of mutual funds and offers guidance on fund selection.
10. The Investor and His Advisers Discusses the role of financial advisors and the importance of maintaining independence in investment decisions.
11. Security Analysis for the Lay Investor: General Approach Provides a framework for analyzing stocks and bonds, emphasizing the importance of a margin of safety.
12. Things to Consider About Per-Share Earnings Delves into the intricacies of evaluating company earnings, warning against common accounting tricks.
13. A Comparison of Four Listed Companies Offers a practical demonstration of security analysis using real-world examples.
14. Stock Selection for the Defensive Investor Provides specific criteria for stock selection tailored to the needs of conservative investors.
15. Stock Selection for the Enterprising Investor Outlines more advanced techniques for finding undervalued securities, suitable for more active investors.
16. Convertible Issues and Warrants Examines these complex securities, their potential benefits, and associated risks.
17. Four Extremely Instructive Case Histories Analyzes real investment situations to illustrate key principles of intelligent investing.
18. A Comparison of Eight Pairs of Companies Demonstrates the application of Graham's principles through comparative analysis of similar companies.
19. Shareholders and Managements: Dividend Policy Discusses the relationship between shareholders and company management, focusing on dividend policies and corporate governance.
20. "Margin of Safety" as the Central Concept of Investment Emphasizes the crucial principle of margin of safety in investment decisions, tying together the book's core concepts.

Conclusion

"The Intelligent Investor Rev Ed." remains an indispensable guide for investors seeking to build long-term wealth while managing risk. Graham's timeless principles, combined with Zweig's modern commentary, provide a comprehensive framework for navigating the complexities of financial markets with intelligence and discipline.