The Intelligent Investor

And so Ben Graham wrote this long ago.

And it's one of the books that we use for the GW Investment Institute classes, is The Intelligent Investor, best book ever written.

So says Warren Buffett.

So don't listen to me, listen to Mr. Buffett, has great track record himself for Brookshire Hathaway.

And all of a sudden, you can see like a light bulb moment.

Warren Buffett talks about reading Ben Graham's book, The Intelligent Investor, and the light bulb going on, the concept of value investing.

When you suddenly realize that a dividend can progress almost like a staircase, if you can select around this strategy properly, you think, if I can harness that staircase into a feedback mechanism around how I should feel or what stimuli I take from it rather than the noise in the market, all of a sudden there was a realization.

And that became the core principle around which our family office invested and ultimately the DivGrow funds invest.

A legend.

So he'd read this book by Benjamin Graham called The Intelligent Investor.

You can get it to this day.

People still read it, right? This book completely changed the way Buffett and a bunch of other investors at the time thought about stocks.

So he speaks very highly of his father.

And also a book called The Intelligent Investor.

Now, I don't know what's with this book.

I've tried reading it myself.

It's called The Intelligent Investor by Benjamin Graham.

So Warren Buffett speaks highly of it.

And also Bill Ackman says that his father introduced him to... uh to a guy called leonard who later on recommended the intelligent investor so i don't know maybe uh some of our users can try and try and uh get a copy of the intelligent investor then let us know in the comments how you how will you understand it so and then he also gives a bit of credit as part of the guys who shaped probably his ideologies buffet of course But it's not an official mentor-mentee relationship.

It's more of an unofficial one.

Takeaway number 4.

The liquidation value of a firm Value investing strives to identify stocks that are priced lower than their intrinsic value, something that Benjamin Graham discusses in his The Intelligent Investor.

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The intrinsic value is calculated by using fundamental analysis, and one method that Ben Graham is famous for in this regard is the book value approach.

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That was everything for Benjamin Graham's The Interpretation of Financial Statements.

Know thy income statement and balance sheet Ratios are useful when considering the fundamentals of a company, but beware if the numbers are healthy or not depends on the industry It's quite common that stocks are watered to look like they perform better than they actually do If a stock is priced lower than its current book value, the intelligent investor should take a closer look This could be a great value investing opportunity To achieve maximum portfolio returns, the value investor should do both a quantitative and qualitative analysis of his stock market investments.

Thank you for watching the full video.

You should always factor in the possibility of being wrong in your analysis.

But more on this in The Intelligent Investor.

A satisfactory return is truly subjective.

return that the investor is willing to accept will actually do here, as long as he acts with some kind of intelligence.

Quantitative data may be divided into capitalization, earnings and dividends, assets and liabilities, and operating statistics.

And qualitative information are things such as quality of management, customer preferences and trends, competitive landscape and technological change.

This book is heavily tilted towards the quantitative data and Benjamin Graham states that "...the former are fewer in numbers, more easily obtainable, and much better suited to the forming of definite and dependable conclusions." Moreover, quantitative data typically reveals a lot about the qualitative factors as well Is the management competent? Well, have the earnings, assets and dividends of the company increased under their lead? In that case, yes, very competent With that said, quantitative data are useful only to the extent that they are supported by the qualitative survey of the enterprise The intelligent investor should insist on having both a quantitative and a qualitative validation of his investments.

Takeaway number 4.