Here are my notes taken from “The Intelligent Investor” by Benjamin Graham. These extracts were taken directly from the book that I think are generally helpful to refer back against sometime in the future.
For the key principles noted here, I plan to update it as I reflect more and think about it into my own portfolio. Let’s see if I survive book number two on Security Analysis.
Please buy the book or borrow it from the library if you like the content here! Show support for the publishers and authors. Spoilers ahead! You have been warned.
Chapter 1
Investment versus speculation; results to be expected by the Intelligent Investor…
An investment operation is one which upon thorough analysis, promises safety of principal and an adequate return.
Investing consists of 3 elements
- You must thoroughly analyse a company, and the soundness of its underlying business before you buy its stock
- You must deliberately protect yourself against serious losses
- You must aspire to “adequate” and not extraordinary performance
Invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price.
Do not get confused between speculation and investing. Don’t think you are investing when you…
