Value investing and its principles lay hid in night. God said "Let Benjamin
Graham be" and all was light. This is no doubt a modified version of the tribute
paid to Sir Isaac Newton. But we believe it can rest just as well on the capable
shoulders of Benjamin Graham. After all,
his incisive essays have lit up the dark pathways of investing more brightly
than perhaps any other author and practitioner. What more, his writings have
also given us Warren Buffett, the most successful investor the
world has ever known.
In fact, Buffett argues that had it not been for Graham's work, he would have gone another 100 years still trying to figure out the stock market. And any particular work of Graham that stands out for Buffett? Yes, certainly. Buffett calls Graham's 'The Intelligent Investor' the best book on investing ever written. So smitten he is by the book that he terms the book's chapter 8 and chapter 20 as the two most important essays ever written on investing.
This is not all though. This book, through its simple and lucid style, attempts to guide the layman investor in the basics of investment philosophy. The book aims to enable readers to earn robust and sustainable returns on investments. And that too without resorting to complex mathematical calculations.
The book lays out investment principals based on logic and common sense and is well supported by detailed analytical examples of past performance. A long-term, sound investment strategy is essentially not a by-product of superior intelligence, high business acumen or access to insider information but rather dependant on emotional discipline. It is the cultivation of this emotional intelligence that Benjamin Graham talks about in detail through real-life examples.
Despite being among the earliest of books to be written on the subject, its principles are timeless and hold true even today. In fact the principles are more valid during intermittent periods of financial turmoil and uncertainty which presents the right opportunities for investment, as per the author. The book is a beginner's guide for first-time investors as it helps them develop the right investment temperament for sound long-term investments.
In fact, Buffett argues that had it not been for Graham's work, he would have gone another 100 years still trying to figure out the stock market. And any particular work of Graham that stands out for Buffett? Yes, certainly. Buffett calls Graham's 'The Intelligent Investor' the best book on investing ever written. So smitten he is by the book that he terms the book's chapter 8 and chapter 20 as the two most important essays ever written on investing.
This is not all though. This book, through its simple and lucid style, attempts to guide the layman investor in the basics of investment philosophy. The book aims to enable readers to earn robust and sustainable returns on investments. And that too without resorting to complex mathematical calculations.
The book lays out investment principals based on logic and common sense and is well supported by detailed analytical examples of past performance. A long-term, sound investment strategy is essentially not a by-product of superior intelligence, high business acumen or access to insider information but rather dependant on emotional discipline. It is the cultivation of this emotional intelligence that Benjamin Graham talks about in detail through real-life examples.
Despite being among the earliest of books to be written on the subject, its principles are timeless and hold true even today. In fact the principles are more valid during intermittent periods of financial turmoil and uncertainty which presents the right opportunities for investment, as per the author. The book is a beginner's guide for first-time investors as it helps them develop the right investment temperament for sound long-term investments.
No comments:
Post a Comment