The Intelligent Investor by Benjamin Graham

There can be no coincidence that The Intelligent Investor by Benjamin Graham is both the most important book written about investment and the book that apparently sits constantly on Warren Buffett's desk.

In fact, on the cover, Warren Buffett is quoted as aying, 'By far the best book on investment ever written.' How can you argue with that?

In his early years, Buffett was a student in an investment class taught by Ben Graham. He describes Graham as his most important influence.

The book itself is not a particularily easy read. The core of the book forms the basis of value investment. It has been published and revised and republished many times, and still remains a massive influence in the world of stock markets - even though Graham passed away in 1976.

As time has passed, the methods described by Graham to assess a company have been superceded. Computing power has exploded and this has put much more complex investment tools into the hands of most amateur and all professional investors. It is also worth noting that legislation has been tightened significantly which, hopefully, means that an investor is less likely to be defrauded by management. Hopefully...

That said, The Intelligent Investor by Benjamin Graham was still the first book to suggest and detail investment analysis. It also explains much about the approach and mindset that a successful investor should have. Concepts such as 'Mr Market' are explained.

There is quite simply too much to explain here. It is a must buy/read book for any potentially serious investor. It is to investment what Adam Smith and The Wealth Of Nations is to economics.