The higher the price you pay, the lower your return will be. Value and price: The future value of every investment is a function of its present price.Market behaviour: The more irrational the market’s behaviour, the greater the opportunity for the disciplined investor.It signals the importance, above all things, of process, process, process. This is actually an observation from Buffett’s preface to the fourth edition of The Intelligent Investor – not to mention something we focus heavily on, here on The Value Perspective. Process, process, process: Investors need a sound intellectual framework for making decisions and also the ability to prevent their emotions from corroding that framework.That said, as we also note in The Value Perspective’s selection of reading suggestions, the book is perhaps less for people seeking an introduction to value investing as for those already familiar with the discipline who want to hear from the man who did so much to shape it.Īs ever, rather than offering a traditional review of the book, we will instead touch on the lessons we personally took from it. One of the two most celebrated books he wrote on the subject – the other being Securities Analysis – The Intelligent Investor still strikes a chord with investors today, despite the first edition being written almost 70 years ago. The Intelligent Investor (1949) is by Benjamin Graham, who is not only seen as the father of value investing but, for good measure, was also Warren Buffett’s mentor. Over the last couple of months, our value investing holiday reading tips have comprised two great introductions to the subject – The Most Important Thing and Margin of Safety – and the behavioural finance classic Thinking Fast and Slow.įor those of you lucky people still yet to jet off, this time we are bringing out the big gun, with our latest idea for an extra book to throw into your suitcase widely considered to be the bible of modern value investing.

The intelligent investor first edition