byBenjamin Graham, first published in 1949, is a widely acclaimed book onvalue investing.

The Intelligent Investoris based onvalue investing, an investment approach Graham began teaching atColumbia Business Schoolin 1928 and subsequently refined withDavid Dodd.1This sentiment was echoed by other Graham disciples such asIrving KahnandWalter Schloss.

The Intelligent Investoralso marks a significant deviation to stock selection from Grahams earlier works, such asSecurity Analysis. He explained the change as:

The thing that I have been emphasizing in my own work for the last few years has been the group approach. To try to buy groups of stocks that meet some simple criterion for being undervalued-regardless of the industry and with very little attention to the individual company… I found the results were very good for 50 years. They certainly did twice as well as the Dow Jones. And so my enthusiasm has been transferred from the selective to the group approach.2

Grahams favoriteallegoryis that of Mr. Market, an obliging fellow who turns up every day at theshareholders door offering to buy or sell hissharesat a different price. Often, the price quoted by Mr. Market seems plausible, but sometimes it is ridiculous. The investor is free to either agree with his quoted price and trade with him, or ignore him completely. Mr. Market doesnt mind this, and will be back the following day to quote another price.

The point of this anecdote is that the investor should not regard the whims of Mr. Market as a determining factor in the value of the shares the investor owns. He should profit from market folly rather than participate in it. The investor is advised to concentrate on the real life performance of his companies and receiving dividends, rather than be too concerned with Mr. Markets often irrational behavior.

Since the work was published in 1949 Graham revised it several times, most recently in 197172. This was published in 1973 as the Fourth Revised EditionISBN0-06-015547-7, and it included a preface and appendices byWarren Buffett. Graham died in 1976. Commentaries and new footnotes were added to the fourth edition by Jason Zweig, and this new revision was published in 2003.3

(Re-issue of the 1949 edition) by Benjamin Graham. Collins, 2005, 269 pages.

by Benjamin Graham, 1949, 1954, 1959, 1965(Library of Congress Catalog Card Number 64-7552) by Harper & Row Publishers Inc, New York.

(Revised 1973 edition) by Benjamin Graham and Jason Zweig. HarperBusiness Essentials, 2003, 640 pages.

An unabridged audio version of the Revised Edition ofThe Intelligent Investorwas also released on July 7, 2015.4

Introduction: What This Book Expects to Accomplish

Investment versus Speculation: Results to Be Expected by the Intelligent Investor

A Century ofStock MarketHistory: The Level of Stock Market Prices in Early 1972

General Portfolio Policy: The Defensive Investor

Portfolio Policy for the Enterprising Investor: Negative Approach

Portfolio Policy for the Enterprising Investor: The Positive Side

Security Analysis for the Lay Investor: General Approach

Stock Selection for the Enterprising Investor

Four Extremely Instructive Case Histories and more

Margin of Safetyas the Central Concept of Investment

Important Rules Concerning Taxability of Investment Income and Security Transactions (in 1972)

The Basics of Investment Taxation (Updated as of 2003)

Tax Accounting for NVFs Acquisition of Sharon Steel Shares

Graham, Benjamin; Jason Zweig (2003-07-08) [1949].

. Warren E. Buffett (collaborator) (2003 ed.).HarperCollins. front cover.ISBN

An hour with Mr. Graham: Imagine there seems to be practically a foolproof way of getting good results out of common stock investment

Graham, Benjamin; Jason Zweig (2003-07-08) [1949].

. Warren Buffett (collaborator) (2003 ed.).HarperCollins. p.vii.ISBN

This page was last edited on 23 March 2019, at 18:40

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