Although I strongly encourage any of you to read Benjamin Graham’s classic “The Intelligent Investor” if you have not done so already, I do know that “life happens” and it’s a lot easier to find fifteen minutes to read an article than it is to hunker down and read a dry, detailed text for 4-5 hours straight. So for those of you don’t have the time to read The Intelligent Investor or simply want to get a summary to help you determine whether the book is worth reading, I’ll try and share with you the four general principles that I took away from reading the book.
(1) Price Matters. A lot.
(2) Stock Represents An Ownership Interest In A Real Business.
(3) The Prices Of The Stock, However, Fluctuate Between Irrational Lows and Equally Irrational Highs.
(4) You need a “Margin of Safety” in the form of price to guarantee … Read the rest of this article!