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 saying, 'By far the best book on investment ever written.' How can you argue with that?
Legend has it that Buffett re-reads the book before he makes an investment. Apparently, he feels that every reading stimulates the mind to further ideas and subtleties.
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As time has passed, the methods described by Graham to assess a company have been superceded.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.
Another very important concept detailed in the book is that investment should be "businesslike", even for the amateur investor. This one concept has literally changed the nature of investment and stock markets.
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.
Any investor that wishes to understand the workings of the market must read this book. Quite simply, every other serious investor has already devoured their copy. If you do not have a copy, you really must get one!
To read more reviews, please also visit:
Warren Buffett Book Reviews
Warren Buffett Speaks by Janet Lowe
Buffett The Making Of An American Capitalist by Roger Lowenstein
The Warren Buffett Way by Robert Hagstrom
Buffettology by Mary Buffett and David Clark
The Essays of Warren Buffett: Lessons for Investors and Managers by Lawrence Cunningham
The Tao Of Warren Buffett by Mary Buffett and David Clark
Visit Our Stock Investment Blog