THE INTELLIGENT INVESTOR SUMMARY (BY BENJAMIN GRAHAM)

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This video presents the 5 greatest takeaways from Benjamin Graham’s classic, The Intelligent Investor. This is value investing at its greatest.

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Top 5 takeaways from The Intelligent Investor:

0:00 Intro
0:48 1. Meet Mr. Market
2:59 2. How to invest as a defensive investor
5:25 3. How to invest as an enterprising investor
8:10 4. Insist on a margin of safety
9:54 5. Risk and reward are not always correlated

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TL;DW:
- Firstly, the market tends to be overoptimistic and too pessimistic from time to time. Don’t let this influence what you think that the true value of your assets are. Instead, see it as a business opportunity, where you get to deal with a person who has no idea of what he’s doing.
- Secondly, the defensive investor should go for a diversified portfolio of stocks and bonds, where the stock-category consists of primarily low-priced issues.
- Thirdly, the enterprising investor should also aim for stocks that show lower price tendencies. If he can find a company that is trading below its net working capital, he might have found his El Dorado.
-The forth takeaway is that the intelligent investor should insist on a margin of safety when acquiring an asset.
- And finally, takeaway number 5 is that risk and reward aren’t necessarily correlated.

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My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.

[TheSwedishInvestor]

What do you think of Graham’s advice? 💡 Are they still as applicable today as they were back in the 1970s? 🤔 Share your thoughts with other viewers in the comments below! 👇

Correction: Just like @Samuele Grisi pointed out, there’s been a slight mistake at 07:25. The term "Net Working Capital" should be changed for "Net Current Assets".
Net Working Capital is calculated by deducting Current Liabilities from Current Assets. Net Current Assets, on the other hand, which is what we are interested in in the video, is calculated by deducting Total Liabilities from Current Assets. Graham was never fond of how companies inflated their Long-term Assets (buildings, machinery, goodwill), but by insisting that the price of the company is lower than the Net Current Assets number, you can be quite sure that you're not paying an overprice for those assets ... As essentially, you are paying nothing at all 👍

[derekc]

The biggest thing I learned from thisbook was 50% of investing is buying good companies at good prices and the other 50% is controlling your emotions when mr. market is moody.

[mizanursakib]

"Risk comes from not knowing what you are doing"

[gc]

Dear Swedish, there are thousands of bullshit content on investment and you are one of the very few high quality ones. Thank you for all your work and time.

[Jy-]

This is the first video that I haven’t skipped a single ad. Thanks for your hard work and precise explanation. Kudos to you mate.

[wo]

Make a video on these books:
1) Buffetology
2) richer, wiser and happier
3) joys of compounding
4) why stocks go up and down
5) how to raise your salary by napoleon hill

Cause there are very few and incomplete videos on these books.

[marvinagustin]

In MBA, you're taught if you want a bigger reward, then you need more risk. I thought this was true, but, there are many lies taught in the educational system.

[RetireCertain]

I love the important explanation about the market price may not represent the value of a share. Thanks for the informative video.

[investingtv]

I read this book a year ago, and it's a pretty "heavy" book to read, but this video simplifies it in such a great way :) great job!!

[jessieplexer]

I like this book. Also, 'The richest man in Babylon' is a great book for personal finance

[gauravgarg]

This is extremely detailed and important stuff. Thanks for making this video! Subscribed in the first minute.

[ej_l]

I'm halfway on this book and only written a few summaries about it and I haven't fully understand the others..it's pretty heavy book to learn for investing but you learn from the wise Mr.Graham. thanks to this all over summary on the book

[financialfrontier]

If there is just one thing you should take away from this book, it is that you should not allow yourself to be influenced by Mr. Market, i.e. the mood of the market. Doesn't mean acting emotionally but rather objectively, based on data and facts.

[lassehjgaardjensen]

Damm, this is probably the most informative video I’ve found on investing yet... well done

[devendrasawant]

Thank you very much for the explanation. I am a big fan of your channel now. It takes lot of efforts on your part to read and present summary in such a nice way. Many of these books are on my list of reading. Your summary gives me idea and I can decide order in which I can go on reading. Wish you get many more subscribers for your great work. Big thank you from India.

[bruswane]

2:56
"Ignore him and move on with your day"

*Inserts tinder logo*

[Artonox]

i just finished reading the book, and it is a tough book to read as the english is not modernised. However, the points made in the summary video are everything you need to know. Very good.

[fazio]

The wisest thing that should be on every wise individual's list is to invest in different stream of income that don't depend on the government to bring in money especially now the pandemic is hitting economy pretty hard.

[haroonytreview]

Thank you for your brief and intelligent takeaways. You have explained it perfectly. I believe Mr. Graham's principles still apply to value investing. I would add that some people (present company) have a bit of both defensive and enterprising strategies in today's market. 60 % defensive and 40% enterprising. :)

[fredwinslow]

Possibly the best summary video channel I’ve seen so far and many are appearing. Point to Swedish investor. Keep reading !!