The Intrinsic Value Podcast - The Investor’s Podcast Network

MI359: The Intelligent Investor w/ Shawn O'Malley

Jul 8, 2024

Shawn O'Malley discusses key takeaways from 'The Intelligent Investor' by Benjamin Graham, emphasizing the importance of common sense over high IQ in investing, applying margin of safety, calculating intrinsic value, and leveraging mood swings of Mr. Market. The book's timeless principles highlight disciplined and rational investing, distinguishing between speculation and investment.

54:08

Episode guests

Shawn O'Malley

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Episode notes

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Quick takeaways

Common sense trumps high IQ in investing according to The Intelligent Investor by Benjamin Graham.

Distinguishing between intelligent and average investors is crucial for successful investing strategies.

Leveraging market volatility and applying margin of safety are key principles for prudent investing.

Deep dives

The Impact of Market Mania on Investment Decisions

The podcast episode explores the impact of recent market mania, citing examples like GameStop, AMC, Tesla, and cryptocurrencies on investors' decisions. It questions the viability of the efficient markets hypothesis and emphasizes the importance of recognizing market distortions and acting with discipline.

Intro

3min

Exploring 'The Intelligent Investor' by Ben Graham

10min

The Intelligent Investor: Traits and Behavioral Aspects

10min

Intelligent Investing: From Graham to Modern Markets

9min

Features of the Range Rover Sport, Financial Services, and Margin of Safety in Investing

5min

The Role of Margin of Safety and Intrinsic Value in Investing

15min

In today’s episode, Patrick Donley (@JPatrickDonley) sits down with Shawn O’Malley, Chief Editor of our newsletter, We Study Markets, to discuss what his main takeaways were from doing a deep dive into The Intelligent Investor by Benjamin Graham.

Buffett called The Intelligent Investor the most important book on investing ever written and said outside of his own father, Ben Graham was the most influential person on his life.

You’ll learn what the main principles of the book that stood out to Shawn were, what an intelligent investor does that average investors don’t do, why common sense is more important than a high IQ in investing, how to apply the idea of margin of safety, how to do an intrinsic value calculation, how to benefit from the mood swings of Mr. Market, plus so much more!

The Intelligent Investor by Benjamin Graham was originally published in 1949. It has remained relevant over the years due to its timeless principles and insights into the world of investing. Graham, often referred to as the "father of value investing," offers practical advice for investors of all levels, emphasizing the importance of a disciplined, rational, intelligent approach to investing and the need to distinguish between speculation and investment.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

02:42 - What were the main principles that stood out to Shawn in the book.

12:59 - What an intelligent investor is and what they do.

16:02 - Why common sense rather than high intelligence is what’s necessary for investing.

21:20 - What ideas from The Intelligent Investor, Shawn feels could be updated or revised.

27:31 - How to apply the idea of margin of safety in 2024.

31:58 - What an intrinsic value calculation is and how to do it.

35:23 - How to benefit from the mood swings of Mr. Market.

37:25 - What are some lesser-known nuggets of wisdom in the book.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Lawrence Cunningham's book, The Essays of Warren Buffett.
Benjamin Graham's book, The Intelligent Investor.
Check out How to Calculate the Intrinsic Value of a Company Like Benjamin Graham.
Check out the books mentioned in the podcast here.
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