“Price is what you pay, Value is what you get.” – Warren Buffett

There are no good stocks, or bad stocks. There are only underpriced or overpriced stocks. Great companies with great businesses may not be great investments if you overpay for the stocks. Similarly, moderate or even mediocre companies or businesses could be worthwhile investments if bought at low enough prices. And that is the gist of this book.

Benjamin Graham (1894 – 1976) was the mentor and teacher of Warren Buffett. He was the founder of the discipline known as “security analysis”.

I bought The Intelligent Investor, after a few authors of value investing books I read made references to Graham and his book. And I am grateful to Graham for the knowledge, effort and time he had devoted into writing this book.

Graham outlined the model portfolio for defensive and aggressive value investors. He had also made references to the many bull and bear runs in the last century, highlighting the many different stocks that were overpriced or underpriced and their subsequent performances.

Graham introduced the of “Margin of Safety” as the central concept of investment. This concept is frequently used by Buffett to his great benefits.

I didn’t feel hyped when reading this book. I felt down-to-earth. Graham didn’t promise the sky or the riches. Rather, he highlighted the many rewards as well as pitfalls of stock investing. If he had written only about the rewards, I could have fallen into a false sense of security and over confidence, which could lead to undesirable consequences.

This book is a must read for all investors.