The market is a pendulum that forever swings between unsustainable optimism (which makes assets expensive) and unjustified pessimism (which makes them too cheap).

(If, for example, you calculate a 7% return on your investment within 1 year, but inflation is at 4%, you’ll only earn a return of 3%, this calculation might make you realize that this investment may not be worth the effort). Intelligent investors take the inflation rate into consideration.They ensure they can take a hit and survive it as it will happen at one point or another. Crashes are inevitable so intelligent investors are prepared for high and low points both financially and mentally.They buy only when an asset price is undervalued. Intelligent investors diversify their investments to protect themselves against losing everything at once.They analyze the long-term development and look at the bigger picture. Intelligent investors take their time to examine a company’s long-term value.Here are some key summary points from the book: What are the main summary points of The Intelligent Investor? He was a senior writer at Money magazine, a mutual-funds editor at Forbes magazine, and a guest columnist for Time and cnn.com. Jason Zweig is an investing and personal finance columnist for The Wall Street Journal.

Graham taught at the UCLA Anderson School of Management.

Who is the Author of The Intelligent Investor?īenjamin Graham was a British-born American economist and professional investor. The book's main investment approach outline is that of value investing, which is an investment strategy that targets undervalued stocks of companies that have the capabilities as businesses to perform well in the long run. The Intelligent Investor provides strategies on how to successfully use value investing in the stock market. This is a summary review of The Intelligent Investor containing key details about the book.

The intelligent investor jason zweig