The Intelligent Investor by Benjamin Graham
Intelligent investing takes a long-term, risk-averse, value investing approach to the stock market.
- Focus on long-term value.
- Don’t fall into the trap of only looking at short-term gains or risky investments in companies that are trending.
- It’s easy for human to trick themselves into seeing a pattern when there’s actually just randomness.
- Instead, look at the big picture of the company’s financial history, its current value and future potential.
- Diversify investments.
- Never put money on one stock, no matter how promising it appears.
- Invest in both bonds and common stocks.
- Buy in low and sell in high.
- Align your portfolio with well-established funds with a long history of success.
- Set your investments on autopilot.
- Aim for safe and steady revenue, not to pull in extraordinary profits and outperform professional brokers.
- Reflect and readjust your portfolio every six months.
- Always be prepared for crises.
- Don’t sell everything at the first sign of danger.
- Even after the most harmful crashes, the market will recover.
- Don’t trust the market.
- It swings back and froth between ups and down.
- Fluctuations can’t be foreseen.
- Crises happen from time to time.
Tagged: #book, #investing