Enterprising Investor Forum

The Intelligent Investor, Benjamin Graham (with preface by Warren E. Buffett and commentary by Jason Zweig). Tuesday, June 12, 2007

As it says on the cover, this book is the definitive book on value investing. It can look a bit daunting at first but it is a relatively easy read and conveys Graham’s overall approach to investing. Despite the fact that Graham updated the latest edition in 1976, it is amazing to see how it is a timeless classic. The preface by Buffett is a bonus but it’s Zweig’s commentary that really takes it one step further. It’s like having your own personal tutor that goes through every chapter with you, not only clarifying the text but also offering up-to-date examples and adding useful commentary.

This is a book for true investors and not traders or speculators; the ultimate goal is not to maximise profits but to minimise loss (i.e. Graham’s famous margin of safety). This book is considered a bible by the best investors around. Buffett himself says “By far the best book on investing ever written.”

Graham starts by portraying the different types of investors and details investment strategies for both the defensive and enterprising investor showing how investors can identify under priced stocks. He goes on to offer his approach to develop an investing plan not only for buying stocks but also bonds and stresses that one must always stick to the plan regardless of what is happening around us … emotions are what tend to betray investors during sudden bull and bear markets.

A must read for anyone who has a passion for investing and who wants give him/herself the best chance of successfully managing savings.

Enjoy!