Over the past couple weeks, I’ve been reading Benjamin Graham’s The Intelligent Investor at the suggestion of a professional money manager. Ever since I got my first job out of college, I’ve tried to learn about investing and the stock market. I saved as much money as I could, putting some into my 403(b) plan with TIAA-CREF, putting some into an online savings account to earn 5% interest, and leaving some for my self to invest in individual stocks of my choosing.
I lived quite frugally for some time in D.C. along with two other great friends I made. As one of my friends watched me scoop up the last of my baked beans with a piece of wheat bread while watching The Daily Show, they said I ate worse than prisoner. Nevertheless, I still was able to go out some of the time and was able to enjoy myself and their company.
But back to this book I’ve been reading. Benjamin Graham was basically the mentor and teacher of Warren Buffet (a very rich, shrewd, and keen investor by all accounts – an understatement, of course) and the book lays the groundwork for the concept of value investing. The basic idea is to buy stocks that are undervalued by the market and to hold onto them for a very long time or until the market fully values them.
As I’ve been reading, I’ve been taking some fairly detailed notes on all the chapters. I’ve also been extremely fortunate to have the same money manager as my own mentor, a person with whom I have discussed Graham’s concepts and to whom I may ask questions. I’ve enjoyed the material and discussions and have already learned a great deal. I just wish I had known about this book 4 years ago.
better to read such a classic thoroughly and repeatedly than to consume the flow of investment guides. Trust me, you are still young enough tp profit handsomely from it.
That’s my favorite investing book. I read it and others and now understand how the market works and how it strays from intrinsic value often. I don’t think this buy and hold a US stock index fund like the S&P 500 is going to do well for Americans if the markets are like they were in the 70s. Financial advisors will say you cant time the market and don’t have to bc the markets have been freakishly trending up every decade. I think Intelligent investor is even more important now.