We Study Billionaires - The Investor’s Podcast Network

Classic 12: The Intelligent Investor

Apr 19, 2022

Discover why Warren Buffett considers a certain book essential for investors. Learn the distinctions between active and passive investing. Explore how inflation can significantly impact investment decisions. Delve into the chapters that Buffett highlights as the most important in investment literature. Uncover the process of calculating a stock's intrinsic value and hear differing opinions on valuation strategies. These insights will equip you with a deeper understanding of value investing and market dynamics.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ADVICE

Investing vs. Speculating

Prioritize investments offering reasonable returns and principal safety.
Avoid excessively high gains, which signal speculation, not investing.

INSIGHT

Passive Investing

Investing can be boring due to its long-term, buy-and-hold nature.
Passive investors seek high-quality picks and hold them long-term.

ADVICE

Active vs. Passive Investing

Aggressive investors often underperform passive investors despite more effort.
Focus on sound strategies and emotional control instead of market timing.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

The Warren Buffett Accounting Book

Read reviews of this book

Stig Brodersen

Preston Pysh

The Warren Buffett Accounting Book, authored by Stig Brodersen and Preston Pysh, provides a comprehensive guide to understanding Warren Buffett's investment philosophy through the lens of financial statements. The book breaks down complex accounting concepts into easily digestible explanations, making it accessible to both novice and experienced investors. It emphasizes the importance of analyzing financial statements to identify undervalued companies, a core tenet of Buffett's investment strategy. The authors use real-world examples and case studies to illustrate key concepts, helping readers develop a deeper understanding of how to evaluate businesses. The book also explores Buffett's approach to business valuation and risk management. It serves as a practical tool for investors seeking to emulate Buffett's success.

The intelligent investor

Jason Zweig

Benjamin Graham

Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.

Security Analysis

Benjamin Graham

David L. Dodd

First published in 1934, Security Analysis is a seminal work in the field of finance that lays the intellectual foundation for value investing. The book, written by Benjamin Graham and David L. Dodd, distinguishes between investing and speculating, emphasizes the importance of thorough financial analysis, and introduces key concepts such as the 'margin of safety.' The sixth edition includes commentary from leading Wall Street money managers and a foreword by Warren E. Buffett, who has praised the book for its enduring relevance in modern markets.