The Intelligent Investor

THE INTELLIGENT INVESTOR
A BOOK OF PRACTICAL COUNSEL
REVISED EDITION

B E NJAM I N G RAHAM
Updated with New Commentary by Jason Zweig

An e-book excerpt from

To E.M.G.

Through chances various, through all vicissitudes, we make our way. . . . Aeneid

Contents

Epigraph Preface to the Fourth Edition, by Warren E. Buffett A Note About Benjamin Graham, by Jason Zweig Introduction: What This Book Expects to Accomplish
COMMENTARY ON THE INTRODUCTION

iii
viii

x 1 12 18 35 47 58 65 80 88 101 112 124 133 145 155 179 188

1.

Investment versus Speculation: Results to Be Expected by the Intelligent Investor
COMMENTARY ON CHAPTER 1

2. 3.

The Investor and Inflation
COMMENTARY ON CHAPTER 2

A Century of Stock-Market History: The Level of Stock Prices in Early 1972
COMMENTARY ON CHAPTER 3

4. 5. 6.

General Portfolio Policy: The Defensive Investor
COMMENTARY ON CHAPTER 4

The Defensive Investor and Common Stocks
COMMENTARY ON CHAPTER 5

Portfolio Policy for the Enterprising Investor: Negative Approach
COMMENTARY ON CHAPTER 6

7.

Portfolio Policy for the Enterprising Investor: The Positive Side
COMMENTARY ON CHAPTER 7

8.
iv

The Investor and Market Fluctuations

v

Contents
COMMENTARY ON CHAPTER 8

213 226 242 257 272 280 302 310 322 330 339 347 367 376 396 403 418 422 438 446 473 487 497 512 525 532 535

9. Investing in Investment Funds
COMMENTARY ON CHAPTER 9

10. The Investor and His Advisers
COMMENTARY ON CHAPTER 10

11. Security Analysis for the Lay Investor: General Approach
COMMENTARY ON CHAPTER 11

12. Things to Consider About Per-Share Earnings
COMMENTARY ON CHAPTER 12

13. A Comparison of Four Listed Companies
COMMENTARY ON CHAPTER 13

14. Stock Selection for the Defensive Investor
COMMENTARY ON CHAPTER 14

15. Stock Selection for the Enterprising Investor
COMMENTARY ON CHAPTER 15

16. Convertible Issues and Warrants
COMMENTARY ON CHAPTER 16

17. Four Extremely... [continues]

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