The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel

C. Bartle

Jan 2, 2010 at 9:26 pm

Boring and conservative was too generous in my opinion. If this is the sort of book for you, then save your money, give it to a fund manager and go find some grass to watch growing. It is however safe and conservative, but you’re not going to beat the market. If you’ve got the urge to do it yourself, start with Willian J ONeal or the interviews with top traders series.
Rating: 1 / 5

GORDON

Jan 2, 2010 at 10:27 pm

I agree with the other reviewers that this book is an outstanding essay for those who want to learn how to select stocks for a value portfolio. Where we differ is that for the typical investor he does not have the resources to build a properly diversified portfolio- either financial or mental resources. Value stocks do provide returns in excess of broad market returns but in order to have adequate diversification you must assemble several hundred issues well beyond the resources of the average investor. Further one must have the time and skill to evaluate several thousand issues.

Consider the following in light of current market competition to gain an advantage over ptofessional investors: Piscaqua Research in a study covering the period 1987-96 found that only 10 out of 145 major pension funds, or just seven percent, out performed a portfolio consisting of a simple 60%/40% mix of the S&P 500 index and the Lehman Bond index respectively.

Or is it logical I ask for you to believe that you can predict which actively managed funds will out perform, or are you overconfident of your skills? If you are trying to find the great fund managers who will out perform in the future ask yourself: what am I going to do differently in terms of identifying the future winning fund managers, than did the pension plans and their advisors? And if you are not going to something different what logic is there in playing a game at which others with superior resources have consistently failed?

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ht of current markets. Is it feasible for the average investor to beat the market?

I can offer a solution to this problem. I want to recommend for you a book titled How to Make Money in the Stock Market-Buy 2,500 different stocks for $1000 – Pay no Commission This book is a must for those wanting to find out about indexing (passive investing) and why it is the superior method for the small investor (and big one too). This book is an outstanding guide to personal investing. It will be useful to all investors from novices to highly the highly experienced. This book prepares the reader to approach investing from the standpoint of the underlying science. It is the antithesis of a ‘get rich quick scheme’.

All aspects of Modern Portfolio Theory and passive (index) investing are explained in a through and easily understood manner. The aspect I like most is that as well as a solid theoretical foundation the book is very practical and shows the reader how to create (and more importantly) and manage over time a successful portfolio. This is a great book- for the beginning investor, it’s a great place to start and for the experienced investor there are many valuable suggestions.

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Rating: 5 / 5