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Investment insights from the intelligent investor - part two

Benjamin Graham's definition of investing is, "An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return." The pitfalls faced by new investors in the stock market are so many that it's not prudent to walk into it without any basic principles. These basic principles are offered in the book to protect you from speculators and gimmicks in the market as well as saving you a ton of money and keeping away emotional rollercoasters along the way. Image for representational purpose only. Source - Google Images In this second part of the series of blogs on the insights from the intelligent investor (Revised edition, with commentary by Jason Zweig), we look at more key takeaways from the book, that remains relevant to our times. Click here for part one. Thoroughly analyse a company, and the soundness of its underlying businesses, before you buy its stock. Deliberately protect yourself against serious losses. As...

Investment insights from the intelligent investor - part one

The intelligent investor by Benjamin Graham is considered in high regard when it comes to value investing. As Warren Buffett puts it,  " By far the best book on investing ever written." The intelligent investor is an essential read for anyone starting out on their investment journey. It is not a get rich quick book but rather a book on rational thinking about investment. It helps in critical thinking about your investment choices and asks you to be sceptical about generalizations in the field and helps you avoid the pitfalls of blind investing. Image for representational purpose only. Source - Google Images In this series of articles on the insights from the intelligent investor (Revised edition, with commentary by Jason Zweig), we look at the key takeaways from the book, that remain relevant to our times. Stock price should not be far above the tangible asset value (book value). For a defensive investor - ratio of investment between stocks and bonds - varies fr...