The Intelligent Investor: The Definitive Book On Value part 20 pot

... on the average, from secondary common stocks only if he buys them for less than their value to a private owner, that is, on a bargain basis. Portfolio Policy for the Enterprising Investor: The ... is to buy them only when obtain- 176 The Intelligent Investor 184 Commentary on Chapter 7 HIGH POTENTIAL FOR HYPE POTENTIAL Investors aren’t the only people who fall prey to...

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... International and Pan-American Copyright Conventions. By payment of the required fees, you have been granted the non-exclusive, non-transferable right to access and read the text of this e -book on- screen. ... 270, 360n 620 Index About the Authors BENJAMIN GRAHAM (1894-1976), the father of value investing, has been an inspiration for many of today’s most successful businesspe...

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... fur- ther and assert that in an astonishingly large proportion of the trading in common stocks, those engaged therein don’t appear to know—in polite terms—one part of their anatomy from another. ... realized by the typical conservative investor over most of the long-term past. It may not seem attractive in relation to the 14%, or so, return shown by common stocks during the 20 y...

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... the rejection of the stronger income-bond form is a fascinating illustration of the way in which traditional institutions and habits often tend to persist on Wall Street despite new conditions ... also pay on the common. On the other hand, the typical pre- ferred stock carries no share in the company’s profits beyond the fixed dividend rate. Thus the preferred holder l...

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... 1 that the definition of an “enterprising” investor depends not on the amount of risk you seek, but the amount of work you are willing to put in, Graham falls back on the conventional notion that ... be sure, a transaction fee of $4 takes a monstrous 8% bite out of a $50 monthly investment—but if that’s all the money you can spare, then these microinvesting sites are the only...

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... disappointments to the public. The dangers arise both from the character of the businesses that are thus financed and from the market conditions that make the financing possible. In the early part of the century ... and consequently less favor- able for the buyer.† The effect of these considerations becomes steadily more impor- tant as we go down the scale from the h...

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... with only one small decline over the entire period. Its book value was about equal to the market price. With this conservatively 168 The Intelligent Investor the end of 1968 and revalued on June ... to the particular issue. If the resultant value is suffi- ciently above the market price—and if the investor has confidence in the technique employed—he can tag the s...

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... and other professional investors are saddled with: • With billions of dollars under management, they must gravitate toward the biggest stocks the only ones they can buy in the multimillion-dollar ... investing intelligently is about controlling the controllable. You can’t control whether the stocks or funds you buy will outperform the market today, next week, this month, or this y...

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... based on the sum of one share of each of the ten funds. These companies had combined assets of over $15 billion at the end of 1969, or about one-third of all the common-stock funds. Thus they ... other people’s money.” The summary told us further that “they are young some earn more than a million dol- lars a year they are a new financial breed they all have a total fascination wit...

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... to being brilliant; they do pride themselves on being careful, conservative, and competent. Their primary aim is to conserve the principal value over the years and produce a conservatively acceptable ... beyond that—and they do strive to better the goal—they regard in the nature of extra service ren- dered. Perhaps their chief value to their clients lies in shielding them from c...

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