{"id":7387,"date":"2022-05-20T06:44:13","date_gmt":"2022-05-20T01:14:13","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=7387"},"modified":"2022-05-20T12:17:48","modified_gmt":"2022-05-20T06:47:48","slug":"the-intelligent-investor","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/the-intelligent-investor\/","title":{"rendered":"The Intelligent Investor Summary for People in a Rush","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
“I want to read finance and investment books, but my day job takes too much of my brainpower.”<\/p>\n
“Man, I wish I could read that Peter Lynch book, but the Dan Brown on my table looks much more appealing.”<\/p>\n
Do you find yourself saying these sentences often?<\/p>\n
Do you want to read finance books, but they are too bulky or time-consuming for you?<\/p>\n
Don’t worry; we have you covered.<\/p>\n
We understand that finance books seem like a drag, no matter how rewarding they might be.<\/p>\n
So, we’ve curated a series to help you save time and effort \u2013<\/p>\n
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I am currently reading ‘The Intelligent investor” for the second time, and I must say, what a goldmine this book is!<\/p>\n
Popularized as the “Bible of Investing,” this book provides a sound intellectual framework. It guides the investors in keeping their emotions in check on the roller coaster ride that investing can be.<\/p>\n
The book was originally published in 1949 by Benjamin Graham, known as the father of value investing, and has been widely accepted by practitioners like Warren Buffett<\/a> over the decades. In fact, if it weren’t for Graham and his teachings, Warren Buffett probably wouldn’t be one of the greatest investors the world has seen.<\/p>\n So, here is “The Intelligent Investor\u201d summarized for people in a rush\u2026.<\/p>\n <\/p>\n If you think Graham refers to someone with a fancy finance degree or a high IQ as an intelligent investor, then here’s the good news for you. He is not.<\/p>\n All one needs to become a successful investor is a basic understanding of the financial statements of a company<\/a>, presence of mind, and a solid mindset of trusting your own assessment rather than the noise of the market.<\/p>\n Now, while Graham advocates that every investor knows what is best for them, he does provide a framework or a thought process, if you must say, to investors, to help them on their journey.<\/p>\n Here are some of my favorite takeaways from the book:<\/p>\n Let’s get the basics out of the way first.<\/p>\n If you are looking for a \u201cget rich quick\u201d scheme, or if timing the market and trading give you the adrenaline, maybe you should skip this book.<\/p>\n An intelligent investor is not about getting crazy profits; it is about developing a sound mental framework that equips you with the decision-making ability to make the right investments at the right price.<\/p>\n The first step to becoming an intelligent investor is understanding what an investor is. According to Graham, you’re an investor when:<\/p>\n Whatever activities do not fulfill the above criteria are speculative in nature. And this book enlists numerous examples which show that you’ll be better off without engaging in speculation.<\/p>\n <\/p>\n An intelligent investor is not someone who can predict the next multi-bagger.<\/p>\n Rather, intelligent investing is a well-thought process that involves careful study of a business, its evolution, and its management. An intelligent investor should be able to:<\/p>\n If your heartbeat works in sync with how the market reacts, you’ll be better suited to having an autopilot portfolio that doesn’t require much time and effort.<\/p>\n This requires an almost \u201cascetic detachment\u201d from the craziness of the markets.<\/p>\n For defensive investors, he suggests the following:<\/p>\n Investing in an index fund<\/a> is an alternative solution to save all the time and effort required to follow the above-mentioned approach. Index funds consist of those companies which more or less fulfill these criteria.<\/p>\n1. Are you investing or speculating?<\/h3>\n
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2. Stick to basics<\/h3>\n
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3. Define your style of investing before jumping into it<\/h3>\n
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