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If you could read only one book to develop a winning investment strategy, the choice would unquestionably be The Intelligent Investor by Benjamin Graham.
As Warren Buffet says, “The Intelligent Investor is by far the best book on investing.”
But why does this book deserve such high praise?
The Intelligent Investor is special because it outlines the philosophy of Value Investing. The book teaches investors how to recognize a business’s inherent value. This ‘true’ value is not always in line with the price of the business’s stock. By carefully selecting these mispriced businesses, investors can make phenomenal returns as the market catches up to the true value of the business.
In a world where ideas such as the “rational market hypothesis” have led countless economists, businesspeople, and brokers to ruin, Benjamin Graham speaks the common sense idea that the market is merely a reflection of speculative perception.
While The Intelligent Investor can sometimes be a technical read that gets caught up in the weeds, it will leave you with the single greatest framework ever devised for deriving value from the financial markets.
Study this book. Make it your investment Bible. Reap the rewards.
