Speculators do not care about the underlying business, only the stock price. Speculators buy things expecting to sell them later at a higher price to other speculators.Their profits will come from the success or failure of that business. Investors are in for the long run and are buying a part of a real business.He differentiates the investor from the speculator. Market below their “real” value, determined by the business fundamentals. Graham’s central investing concept is to buy stocks sold by Mr. Charlie Munger Key Idea #2: Investor vs Speculator The big money is not in the buying and selling … but in the waiting. So a very important skill is to learn to stay calm and focus on fundamentals instead of share prices. Market’s moods might take a while to change, this can put a strain on investors’ minds. Market when he is optimistic, and buy from him when he is depressed.īecause Mr. The main task of the intelligent investor is to not follow Mr. Some days, he is depressed and undervalues them. Market is overly optimistic and overvalues some stocks. Market to represent the investing world at large. It teaches beginners to have realistic goals and to manage risk properly, which should be the first things they learn about. The book is well written and organized and represents a great first book to read about investing. Modern editions also include commentaries to keep the book relevant (more on that at the end of this article). Its ideas and concept are timeless, still as relevant today as in the 50s. While the language can be a bit dated at times, the book remains fairly easy to read. This made it a foundation stone for future educational material on investing.

This book was one of the first investing manuals to be written by a legendary investor like Graham, with a focus on advising retail investors. Is The Intelligent Investor’s Reputation Deserved?

The intelligent investor jason zweig