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The intelligent investor book by Benjamin graham in Telugu || Telugu Audio book || #investment



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the intelligent investor book written by benjamin graham.

The Intelligent Investor summary can be broken down into several categories of strategies to use when investing.

Value investing - The concept of investing is that it seeks out businesses that are undervalued and have the potential to grow.

Long-term investing - Graham argues for staying in the market rather than buying and selling stocks.

Staying away from trends and crowd pressure - Graham argues for staying away from investing in "group think" or "Mr.Market" pressures.

Emotions vs. Logic - Investing can be emotional, and Graham tells readers to stick to what they know.

Methods to determine value - Graham discusses different factors and ways to calculate stock value.

Teaching Tools - In chapters 17-18, Graham uses historical examples, company comparisons, and management styles to display investing flaws.

The Three Principles of Intelligent Investing

Benjamin Graham writes about three main principles of intelligent investing in his book. The three principles are investing with a margin of safety, "Mr. Market" allegory, and being aware of one's investment self.

Invest With a Margin of Safety

Graham said that investors must know how much they can lose when being involved with investing. Humans make mistakes, and these mistakes can be amplified when making investing decisions. Investors need to be aware of possible investing errors when dealing with the market. Graham says a great way to accomplish a healthy degree of margin of safety is to seek out undervalued stocks. He also mentions several other ways to provide for a margin of safety:

Do not get involved in the trends of other investors

No one can predict the future

The constant ups and downs of the stock market is okay as long as an investor sticks to their plan

Diversifying investment portfolio

Purchasing companies that pay high dividends and have little to no debt

Chapters 1-7 Investment Versus Speculation

In the early chapters, Benjamin Graham seems to be setting the foundation for the rest of the book. He does this by laying out the historical stock market returns (Ch. 3), and giving his own market commentary at the time of the book's issuance (Ch. 2). The early chapters are best known for Graham's definitions of 'investments', 'speculation', and 'enterprising' and 'defensive' investors. He spends the majority of the early chapters defining these terms and then giving portfolio policy recommendations for enterprising and defensive investors. Investment versus speculation is summed up nicely by Graham when he says, 'An investment operations is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.' That's the first 'fork in the road' that Graham wants the reader to consider. Are you a speculator or an investor? What have you been in the past? What would you like to be?

He then places investors into one of two 'buckets': defensive or enterprising. A defensive investor is generally passive. He/she is completely fine with adequate returns so long as little time/energy is spent investing. The enterprising investor, on the other hand, has the time, energy, and desire to put more work into their investment portfolio. They may spend time researching companies to invest in, for example. Again, Graham provides a description of both because he wants readers to decide for themselves which type of investor they are or would like to be.

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