The Intelligent Investor
by Benjamin Graham
Surprising that an RA would have enjoyed a dated finance
book – The Intelligent Investor, by
Benjamin Graham – albeit a seminal read in the industry at that time (late
1970s). (Note that the author died in
the late 1970s and the book had a latest edition in 2015 with input from Warren
Buffett, which was not the version suggested.)
The book provided historical perspectives from the early days of the
Stock Market (late 1890s) through the 1970s.
I’m not sure if the suggestions I read would be applicable now that mergers
and acquisitions have come so far (in addition to international trade and
technology), but certainly information helpful to understanding how we got to where
we are today. One suggestion that few would
follow today is investing in CDs from local banks, which paid double digit
interest in the late 1970s (today closer to 0.1% or lower). The book was lauded for its value on the
topic of investing. Chapters include:
the investor vs. inflation; how to think about your portfolio; the investor and
market fluctuations; the investor and their advisors; and a series of case
studies using top industry mergers from the era. For business students, a great historical
view on how to invest, who to best include as advisors, and a way to diversify
investments. A yawn for anyone not
inclined to invest.
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