Warren Buffett: Read these two chapters from The Intelligent Investor
Buffett says The Intelligent Investor changed his life and recommends reading these two chapters in particular.
The Intelligent Investor by Benjamin Graham is almost universally regarded as the book about investing. I was reading through the transcript from the 2008 Berkshire Hathaway shareholder meeting this morning, and I came across a nugget from Mr. Buffett about Graham’s book.
Well, I will tell you what changed my own life on investing. I started investing when I was 11. I first started reading about it — I believe in reading everything in sight. And I first started reading about it when I was probably six or seven years old. But for about eight years I wandered around with technical analysis and doing all kinds of things, and then I read a book called “The Intelligent Investor.” And I did that when I was 19 down at the University of Nebraska. And I would say that if you absorb the lessons of “The Intelligent Investor”, mainly in — I wrote a forward and I recommended particularly Chapters 8 and 20 — that you will not behave like a lemming and you may do very well compared to the lemmings…I think it’s as great a book now as I did when I read it early, I guess, in 1950. You will never — you can’t get a bad result if you follow the lessons of — Ben Graham taught in that book.
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If you do not remember Chapter 8 and Chapter 20, take a look below:
Chapter 8 — The Investor and Market Fluctuations
Chapter 20 — “Margin of Safety” as the Central Concept of Investment
You can purchase The Intelligent Investor via Amazon.