The Intelligent Investor: The Definitive Book on Value Investing
Since 1949, The Intelligent Investor has transformed ordinary people into savvy investors who know how to protect their wealth and build lasting prosperity.
Warren Buffett calls it “by far the best book on investing ever written,” and he credits author Benjamin Graham as the second most influential person in his life after his own father.
This isn’t a get-rich-quick scheme or a collection of hot stock tips. Graham’s revolutionary philosophy of “value investing” teaches you to shield yourself from devastating losses, develop long-term strategies, and stay rational when everyone else panics. You’ll discover how to distinguish true investing from dangerous speculation, understand what companies are really worth, and take advantage of market irrationality instead of becoming its victim.
Graham’s timeless principles have guided generations of legendary investors, from Buffett to Irving Kahn to Walter Schloss. His famous “Mr. Market” allegory will change how you view stock price fluctuations forever.
Whether you're a complete beginner or experienced investor, Graham's patient, disciplined approach provides the foundation for long-term financial success.
Interesting Facts
Born from the 1949 Printing Press: The Intelligent Investor first hit bookshelves in 1949, establishing Benjamin Graham as the father of value investing and creating what would become known as the stock market bible for generations of investors.
Buffett's Twenty-Year-Old Epiphany: Warren Buffett read The Intelligent Investor at age 20, and it transformed his entire approach to investing. He later declared it "by far the best book on investing ever written" and credited Graham as the second most influential person in his life after his own father.
Students Named Their Sons After Him: Graham's influence was so profound that two of his students, Warren Buffett and Irving Kahn, named their sons Howard Graham Buffett and Thomas Graham Kahn in his honor.
Intelligence Means Character, Not IQ: Graham defined an "intelligent" investor as someone who is patient, disciplined, and eager to learn, emphasizing that this intelligence "is a trait more of the character than of the brain" and has nothing to do with IQ or SAT scores.
Mr. Market's Manic-Depressive Personality: The book introduced the famous Mr. Market allegory, a fictional business partner who shows up daily offering to buy or sell shares at wildly fluctuating prices driven purely by emotion, teaching investors to exploit market irrationality rather than follow it.
Revised Through Seven Decades: Graham revised The Intelligent Investor several times at roughly five-year intervals, with the fourth revised edition published in 1973 including a preface and appendices by Warren Buffett, and Jason Zweig adding modern commentary in the 2003 edition.
Margin of Safety as the Secret Motto: Graham distilled the entire secret of sound investment into three words: "Margin of Safety," which means buying stocks significantly below their intrinsic value to create a buffer against mistakes and market volatility.
Predicted the 1973-74 Bear Market: When Graham updated the book in 1973, he successfully predicted the disastrous bear market of 1973-74, during which U.S. stocks lost 37 percent of their value.
Taught at Columbia Since 1928: The value investing approach outlined in the book was based on principles Graham began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd, making it a methodology tested across decades.
Simpler Than Security Analysis: The Intelligent Investor marked a significant departure from Graham's earlier work Security Analysis, offering a more accessible approach that applied simple earning criteria to groups of companies rather than requiring extensive individual company analysis.
Chapter Eight Changed Buffett Forever: Buffett has specifically cited Chapter 8 on market fluctuations as life-changing, writing that "immediately the scales fell from my eyes, and low prices became my friend" after reading Graham's explanation of how investors should view price movements.
Still Selling After 75 Years: The book has sold more than one million hardcover copies and continues to be revised and republished, with a 75th anniversary edition released in 2024, proving the timeless nature of Graham's investment wisdom.
Quotes
"The intelligent investor is a realist who sells to optimists and buys from pessimists." - Benjamin Graham
"In the short run, the market is a voting machine, but in the long run it is a weighing machine." - Benjamin Graham
"An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative." - Benjamin Graham
"The investor’s chief problem – and even his worst enemy – is likely to be himself." - Benjamin Graham
"The sillier the market’s behavior, the greater the opportunity for the business like investor." - Benjamin Graham
"Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal." - Benjamin Graham
"Mr. Market’s job is to provide you with prices; your job is to decide whether it is to your advantage to act on them. You do not have to trade with him just because he constantly begs you to." - Benjamin Graham
"A great company is not a great investment if you pay too much for the stock." - Benjamin Graham
"Investing isn’t about beating others at their game. It’s about controlling yourself at your own game." - Benjamin Graham
"The value of any investment is, and always must be, a function of the price you pay for it." - Benjamin Graham
"The secret of sound investment into three words: MARGIN OF SAFETY." - Benjamin Graham
"The intelligent investor gets interested in big growth stocks not when they are at their most popular – but when something goes wrong." - Benjamin Graham
"People who invest make money for themselves; people who speculate make money for their brokers." - Benjamin Graham
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