The Intelligent Investor book review

The intelligent investor  

The intelligent investor is a book that focuses on investing and especially value investing. This book is one of the famous business and investing books in the world. Writer Benjamin Graham was very famous American economist. Graham was known as the creator of value investing also he was very. This book is really old but it still contains many really useful things.

WHY THIS BOOK

I chose this book because it could help me learn business vocabulary and develop myself. I have also wanted to read that book for a long time, but I have not dared because it is in English and it is about 640 pages long. Also I wanted to learn about stock markets and financial analysis.

Structure of the book

This book is divided into two pats. In the first part Graham tells about risk management and value investing in general. First part emphasizes that the investor must be prudent and long-term. Graham says that investors should focus especially on undervalued stocks and minimize possible risk factors. In my opinion, one of the most important things I learned from the first part is the difference between investing and speculating. Speculating focuses short-term market forecasting and investing focuses on evaluating companies business and financial fundamentals over the long term. In the first part Graham brought up one concept that stuck with me. This concept was Mr Market. Mr Market is market operator who offers shares to investors at different prices every day. Investor should treat Mr. Market's offers as opportunities, but understand that he is unstable and overzealous.

In the second part Graham tells how to pick right stocks. He also tells how stocks share prices are determined in the stock market. In my opinion these thing was so interesting to read. I know that I will use couple things that I learned in the future. In the second part Graham also told many concepts, but one of most important was ”Margin of safety” that is mean the difference between the share price and the actual value.

My opinions

Overall this book was very good. There was many words that I did not understand in the first sight, but i used translator. I think that my business vocabulary and knowledge improved so much and that is why I am so glad that I read just this book. I recognized that if I did not have 100 % focus on reading I did not understand that much. So in the future I know that I have to focus 100 % when I read little bit challenging English texts or books.

Overall it is very hard to say how much time I spent with that book because it is at least 40–60 hours because I am very slow reader. I think that I mark about 30 hours as the time spent reading and about 2 hours as the time spent writing the text. I think this is a reasonably fair decision because if I were to set a time of, for example, 55 hours, it would already be more than half of the course time.

Time: about 32-33 hours 

hours left 25.5 hours