The Intelligent Investor

This summary provides a comprehensive overview of Benjamin Graham’s investment philosophy, primarily centered on the core principle of a "margin of safety." It contrasts the defensive investor, who seeks to preserve capital through diversification and index funds, with the enterprising investor, who pursues higher returns through rigorous analysis of undervalued securities. The excerpts highlight the dangers of market speculation, emphasizing that true investing requires protecting against losses rather than just chasing gains. Detailed case studies and market data illustrate how psychological biases and deceptive accounting often lead to financial ruin during bull markets. Ultimately, the source argues that disciplined behavior and a focus on intrinsic business value are the keys to long-term wealth. It asserts that while market prices fluctuate wildly due to human emotion, sound principles remain valid across decades.