The Intelligent Investor

Key Concepts and Strategies

Benjamin Graham's «The Intelligent Investor» outlines several key concepts and strategies for investors. The main ones include:
1.Dividing investors into two types: active and passive. Active investors aim to outperform the market by actively managing their investments, while passive investors prefer long-term holdings with minimal changes.
2.The principle of a margin of safety, which involves buying stocks at prices significantly below their intrinsic value to minimize the risk of losses.
3.Analyzing stocks based on fundamental indicators such as earnings, dividends, and the company's financial health, rather than market trends or speculation.
4.Portfolio diversification to reduce risks, which involves spreading investments across different asset classes and economic sectors.
5.A long-term investment perspective, which involves holding stocks for extended periods to benefit from compound interest and company growth.
6.Avoiding emotional decisions and following a rational approach to investing, which helps investors resist panic or euphoria in the market. These concepts and strategies help investors make informed decisions and build resilient investment portfolios.