Book Shelf

The Intelligent Investor

How to Change your life in Investing Career

A timeless masterpiece!

First published in 1949, it is probably the most famous book on investing to have ever been written. If you don’t already know, one of the author’s student is currently the richest investor in the world. So need anyone doubt if this book is worth it?

There are various schools of thought in the stock market and this one being at one extreme, it is really interesting to learn and see if it fits your approach. The book is really detailed and ripe with his quotes and wisdom that could be life changing in your investing career. Some of his core principles are as follows:

• A stock is not just a ticker symbol; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.
• The market is a pendulum that forever swings between unsustainable optimism and unjustified pessimism. The intelligent investor is a realist who sells to optimists and buys from pessimists.
• The future value of every investment is a function of its present price. The higher you pay, the lower your return will be.
• By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.

It is the most authoritative treatise on value investing. He advocates the more rational and business-like approach to rather than indulging in short term trading and trying to time the market. This book should be on everyone’s shelf.

Tejas Khoday

Tejas Khoday

Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.

4 Comments

  • Avatar Ameen says:

    Can this knowledge be combined with trading? Yes I know its probably not the textbook thing to do.. but how about buying stocks really cheap which are in FNO and then selling call options on them perpetually or whenever opportunity comes? That way money can be made on covered calls in the long-run pushing up ROE right?

    • Tejas Khoday Tejas Khoday says:

      By philosophy, trading and value investing are polar opposites. But you can try it. Anyone can try anything. The textbooks don’t make you rich! Your vision, persistence, money management is what counts.

  • Avatar FC Vijay says:

    Sharebroker writing about Warren Buffett. Not bad 🙂

    • Tejas Khoday Tejas Khoday says:

      It’s definitely worth a read. It may or may not suit your approach to the markets. Just spreading knowledge.

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