How to be an intelligent investor

By: Gaurav Mashruwala

When do we like to purchase any goods or services - when their prices are
high or when they are low? Are discounts good for us or are they bad? While
all of us run when we hear word discount and sale, our actions are exactly
opposite when it comes to equity investing.

Legendary investor Benjamin Graham in his book "The Intelligent Investor"
has stated that stocks become more risky when prices are high and less risky
when prices are low. This we know is also true for all our purchases. Goods
and services are less attractive when prices are high and more attractive
when prices are low. However while investing in equity markets we sell our
stocks when prices are falling (low) and when they are rising we feel safe
to invest.

Investing is a strange business. It's the only one we know of where the more
expensive the products get, the more customers want to buy them - Anthony M
Gallea

In year 2002 when equity markets were at its bottom after technology bubble
had busted, one of my new client was shocked when I recommend 25% of his
allocation into equity. According to him equity market was speculation den.
Same client about six months ago called me up to check if it was alright to
park his entire PPF maturity proceeds into equity.

Another interesting observation made by Benjamin Graham is that an
individual considers someone a speculator if that person was to invest in
equity markets after they have fallen massively – say may be after a bubble
burst. Same individual will treat someone as an investor when that person
invests into equity markets after they have risen sharply. What is more
speculative in nature - to invest at low levels or high levels?

Since it is difficult to see future, we take shelter in past to predict
future. It is like driving the car by only looking into rear view mirror.
Rear view mirror only reflects the road, which has already been traveled.
The reason we consider an investor speculator when he invest after markets
have fallen is because we are referring our judgment on past events. The
same is true when we refer to someone as an investor after markets have
risen. However we all know that "past performance may or may not be
repeated" – To drive ahead we need to look in front and not in rear view
mirror.

It is common sense that to earn good returns we need to buy low and sell
high. This also means sailing against the tide. Buy when everyone is selling
and sell when everyone is buying. This strategy is called contrarian
strategy.

It takes patience, discipline and courage to follow the contrarian route to
investment success: to buy when others are despondently selling, to sell
when others are avidly buying - Sir John Templeton

The reason Sir John Templeton says it requires courage to be contrarian is
because as human beings we prefer being with the crowd. We are not
comfortable being seen opposite the crowd. When we are on opposite side of
the crowd whole world can see us. We feel that if we make mistake then crowd
will laugh at us. On the other hand if we are with the crowd and even if our
strategy goes wrong nobody will laugh as everybody would have gone wrong.

Finally ending with one more quote from Benjamin Graham "Individuals who
cannot master their emotions are ill-suited to profit from the investment
process".

Source: Moneycontrol.com

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Quality, not quantity, should be the focus

I am 61 and retired. I invested in various mutual funds. My investment horizon is about five years with a view to derive approximately 20-25 per cent annual returns and then invest the lump sum in a fixed deposit or a monthly income plan. I would be grateful if you could please review my portfolio and guide me with regard to fund selection and the need for consolidation.

- S.S. Moondra, Jaipur

Congratulations! Your fund selection is notable. In less than three years you have put together a portfolio of top-rated mutual funds.
 
Your current portfolio consists of 18 funds, totaling to a corpus of Rs 6.3 lakh. This amount has grown to almost Rs 8.5 lakh (as on October 1, 2007). That’s a return of 35 per cent over three years.
 
On the face of it, it’s a remarkable feat. But when we dug further, we found some holes in the portfolio.
 
Getting a fix on the numberWhile your fund selection has been excellent, you could have easily skipped a few funds. An intelligent portfolio is not one that just accumulates good funds.
 
A higher number does not necessarily make for good diversification. Instead, it should have funds that work well together so that the portfolio as a whole performs impressively. In your case, a number of additional purchases could have been done in the existing funds rather than new ones.
 
We are not saying that just because you own more than a dozen funds you are in trouble. The number of funds is not as important as the essence and investment focus of each of them.
 
Owning multi funds of the same theme will add little to your portfolio. For instance, funds like Fidelity Tax Advantage and Reliance Tax Saver could have been skipped. Ditto with others like DSPML Technology.com and Reliance Equity Opportunities.
 
We suggest you consolidate your portfolio by exiting from these funds and move the corpus to funds like Reliance Vision. You will not be able to sell your ELSS holdings right away as they have a three year lock-in period.
 
On the asset allocation fund, you should increase your debt portion as that stands at just 8.6 per cent of the total holdings. Towards this end, a portion of your corpus can be channelised to HDFC Long Term MIP.
 
Time is of essence, not timing While you have been regularly investing in funds over the past three years, your investments do not appear to be consistent. For example, on July 18 this year, you invested Rs 2.6 lakh in a day. You attempted to time the market and put in 41 per cent of your current portfolio in one single day.
 
Your strategy backfired badly. During that period the stock market peaked at over 15,000 and tumbled heavily after a few days. You ended up losing a huge chunk of your initial investment amount in no time. Since it is impossible to time the market, a smarter way to get into equities is by opting for a Systematic Investment Plan (SIP). In this way, you discipline yourself to make fixed investments at fixed time periods and ignore the market gyrations.
 
Making smart moves
 
Since your investment horizon is only for five years, we suggest you keep a close watch on your portfolio. Gradually start shifting the corpus from equity to debt-related instruments a year before you require the money.
 
For now, some amount of consolidation, opting for an SIP and increasing the debt component will make your portfolio less volatile and more balanced and simultaneously reduce the downside risk.
 
Source: Business Standard
 

Best Regards,
Ramakanth Reddy.

I know you have lot of choices when it comes to surfing web.  Please visit http://www.ramidi.com when you get a chance and also visit our non-profit website http://www.ramidi.org that aims at helping needy children with their education.  Thanks-A-Lot.  Dreams are realized only when we take steps to fulfil them.
 

How to Be Successful In the Stock Market

Great article by Candice on her blog...
 
Stock Market- A batch of speculation, a marketplace to dream, see them shattered and still maintain dreaming; a topographic point where you carry through your dreamings or phone call it a gamble... what you desire to see it as is really your choice!!

Today's vision is to gain as much money as possible and acquire as much tax returns with an intelligent investing plan. With the roar in the emerging marketplaces and the coming of the Internet and computers, investing in pillory is indeed a moneymaking option. And with stock trading systems such as as online trading, a batch of labor and money is saved if one desires to put in the stock market.

The marketplace scenario is rather volatile with the emerging marketplaces playing a important function in them now. So, to gain the upper limit amount of tax returns from your investment, what is absolutely indispensable on your portion is to acquire a nice cognition of the company's portfolio in which you invest. Besides this, when you make hire an online broker, retrieve to check up on the records from other clients of your broker. However, online stock agents offering consultancy services at cheaper rates because they steer investors through a figure of investment options and assist them take the best, whereby they can gain higher returns.

Online stock marketplace trading offerings an almost clear image about the present marketplace scenario because the unscrupulous middlemen are absent. Being your ain master, you can transport out online stock marketplace trading as your clip permits. This have another advantage- piece trading these stocks; you can follow the swings that the marketplace have to offer and make up one's mind for yourself which are the weaker pillory that you desire to merchandise away for healthy investing in the market. The coming of new trading systems along with the brokerage firm companies guarantee to the investor that long term trading is also possible online besides twenty-four hours trading. A host of banking options with e-broking business relationships facilitates these minutes without hassles.

In general, a fiscal adviser managing your finances between bonds, common finances and the share market, will advice you to maintain your investing in stock marketplaces for a long time- state a lower limit of two years. This cut downs the risks, as the personal effects of marketplace volatility make not impact the terms of the pillory in general. Since the trading indices always demo an upward tendency over a long clip period of time, the opportunities of earning a nice tax return is also pretty high. However, if you travel for twenty-four hours trading, you can gain quite a spot of speedy money by monitoring the marketplace motions and trade a stock quite a few modern times in a day. This necessitates one to have got a just thought of the fortune beyond the company's control that tin affect the stock prices.

Having glorified the online trading system, it should be noted that online trading of pillory could take to assorted unwanted cozenages that a successful stock investor should be aware of. So, seek staying away from programmes that promise of doubling or tripling your returns!

A successful bargainer is one who can equilibrate his portfolio of hazards and tax tax returns well and this of course of study necessitates a batch of research!

Best Regards,
Ramakanth Reddy.
 
I know you have lot of choices when it comes to surfing web.  Please visit http://www.ramidi.com when you get a chance and also visit our non-profit website http://www.ramidi.org that aims at helping needy children with their education.  Thanks-A-Lot.  Dreams are realized only when we take steps to fulfil them. 

What is a Company Worth?

As always I have been searching the web for finding the best bets in investing.  This post by Michael on goodvalue.com has attracted my interest.  Please read through this and gain from it.

I have established my strategy of buying the stock of good companies that for some reason are undervalued by the stock market. Now comes putting that simple strategy into action. The details are a bit harder than the basic strategy.
Returning to my milk analogy, milk has only one way in which it has value–that is, its ‘asset’ of milky goodness. Thus, we can either consume it or sell it off to someone else who would appreciate its milky goodness. Companies are different, though. They too have their asset value, which is the value of all the inventory, machinery, property, patents and other things that could be sold if we shut the company down. In addition to that, they also have earnings power, or the ability to make a profit. So in evaluating companies, we can judge them to be a good or bad value based either on their actual assets or on their future earnings power. We will start with the evaluation of value based on assets.

The father of value investing, Benjamin Graham, wrote a book that all of you should read, The Intelligent Investor. In his book, Graham asserted that a company would be a good buy if it were valued at less than about 2/3 of its total net tangible asset value. Graham excluded patents and other hard to value ‘assets’ from his calculations, so he only counted the ‘hard’ (tangible) assets. To get the net tangible asset value we take the value of all tangible assets and subtract any debt the company owes. This gives us the company’s net worth, which is just like the net worth of a person.

Why isn’t a company selling at 90% of its net tangible asset value a good deal? The reason is that Graham insisted upon having a margin of safety. In other words, some of those ‘assets’ may be overvalued. To avoid situations where the assets are worth little, we want to only buy companies that are selling for far less than we think they are worth.

You may think that this is unlikely, and recently, this has not been very common. However, during bear markets, this happens a lot. The Washington Post Co. was valued by the stock market at only about $80 million in 1973. However, its assets, including television stations, the magazine Newsweek, and the newspaper, could have easily been sold off for hundreds of millions of dollars.

At least one value investor realized the true value of the company, and he bought many shares of Washington Post. His name? Warren Buffet, the most successful investor in the world. Now the Washington Post Co. is valued at over $8 billion in the stock market, giving Buffett a return of over 100x his original investment.

What if the market never realizes the value of the assets of a company, and the company never sells them off? This is not a likely situation. Nowadays, there are many private equity firms that look for such easy money. These companies will buy a majority or large minority stake in a company and then either find better management or sell off the company’s assets for a profit.

In the current market, however, fairly few companies are valued significantly below their assets. That leads us to the second way of valuing companies, which is based on their earnings power. This is much the same way you would evaluate the relative value of a bond or a savings account.

With a bond or savings account, you receive an interest payment that is your payment for loaning your money. With stock ownership, you have a claim to a portion of the profits of the company. If a company has 10 million shares outstanding and makes a profit of $20 million, then the profit per share (also called the earnings per share or EPS) is $2.
So if you own 100 shares, you have ‘claim’ to $200 in profits. Now, companies almost never pay out all their earnings to their stockholders. Usually they will pay a portion of their earnings to shareholders as dividends. Some don’t pay dividends at all. The profits not paid out as dividends are reinvested in the company.

Presumably, those reinvested earnings benefit the stockholders too, in the sense that they will help grow the company and increase the earnings power of the company. The future value of the company will be greater because of the increased future earnings and the stockholder will be compensated with increased market value of his shares of stock.
Thus, we will treat all of the company’s earnings, even those that are reinvested in the company, as income to us, the shareholders. So, to determine the fair price of a stock, we compare its price to the earnings per share (EPS). We divide the price by EPS to get the Price to Earnings ratio or P/E ratio.

The higher a P/E ratio is, the less current earnings the company has for each dollar we invest. So if we were to invest in a company with a P/E of 20, for each dollar we spend to buy stock, we will only get half as much earnings as if the stock had a P/E of 10. Therefore, we want to find and buy portions of companies that have lower P/E ratios. But how high is too high? Here I will give a brief explanation, but see my post on P/E ratios for a more in-depth explanation.

When you are investing in stocks, you value the stocks based on the future income of the company. To find a fair value for those stocks, though, you need to compare that future income to the future income you could get by just sticking the money in a safe U.S. government bond. Since stocks are riskier than government bonds, the earnings yield on the stock (E/P, the inverse of the P/E ratio) should be higher than the yield on a medium term government bond (let’s say with a 5 year maturity).

Medium-term government bonds are yielding about 5% right now, so if we had a perfectly safe stock investment, we would not mind getting a 5% earnings yield (which translates into a P/E of 20). However, stocks are less safe than corporate bonds, which are less safe than government bonds. Therefore, we want to be paid a risk premium for owning stocks. A 2% risk premium is enough for us to consider a stock a good value.

Therefore, stocks that are neither increasing nor decreasing their profits should be a fair value at around a P/E of 14 (and an E/P of 7%). However, because we are value investors, we do not want to pay fair value. Rather, we want to pay below fair value. Therefore, it is a good rule of thumb to avoid companies without significant earnings growth with a P/E over 10. For companies with significant earnings growth, a P/E below 20 should be fine. But, as with buying anything, the cheaper we can buy a good product (in this case, a company), the better.

When we buy something at a price less than it is worth, we give ourselves a margin of safety. That way, we are protected from losing a lot of money should we err in our estimation of the quality of a company. If we were to invest in companies that seemed to be selling at a fair value, we would be at greater risk of losing money if our estimation of the company’s value turned out to be wrong.

Disclosure: I hold no shares of any companies mentioned herein. See the disclosure policy.

Do you want to be a Quiet Millionaire?

Do you want to be a Quiet Millionaire?  from Everything Finance Blog.

Its been a while since I read a good Personal Finance book, because I usually get most of my personal finance advice from the Internet. So when I was asked to review, The Quiet Millionaire, I was like do I really have to read about Personal Finance ?

But I'm glad I did because this book goes way beyond
savings accounts, IRAs, 401ks etc. It helps you understand the important financial goals that a normal family has to accomplish and also guides you in the right direction. Imagine my surprise, when, after reading the book, I realized that I did not know how to reduce taxes effectively as well as have any idea about how to start a successful business.

Now, in this book, Brett Wilder stresses a lot on hiring a Fee -Only Financial Adviser, who will guide you in the right direction throughout your
financial life, but I don't know if I'm ready for that...Yet.

The Quite Millionaire
, is written by Brett Wilder, who is a Certified Financial Planner® with over forty years of professional experience as a personal and business financial adviser. He founded the Financial Management Group, Inc. (FMG) in 1989, a fee-only financial management and investment advisory firm.

According to Brett, the quiet millionaire's life has a purposeful direction, and it is pointed in the direction of a planned, charted course. The quiet millionaire does not live just for today, drifting aimlessly, being consumed by life's daily activities, or mistakenly thinking that tomorrow will take care of itself. Rather, the quiet millionaire does give thought about tomorrow and knowingly commits to funding goals and objectives and to being protected against that stormy day. A financial course is carefully mapped out to assure arrival at specified destinations in life. The quiet millionaire is intelligent and mindful about how to have financial independence and security in order to flow with the happy currents of the life he or she chooses to pursue.

The Quiet Millionaire is a hardcover with 422 pages. The publisher is
FMG Publishing, Inc.

The chapters are very well laid out that effectively describe the financial story of a
quiet millionaire. See for yourself.

  • What Is Important about Money to You?
  • The Financial Management Review ™
  • How to Have a Positive Cash Flow
  • Do You Own the Right Assets?
  • Are You an Intelligent Borrower?
  • Are You Paying Too Much Tax?
  • How to Be an Investment Winner
  • How to Get Maximum Results from Employer Stock Options and Other Key Employee Compensation Programs
  • Are You Prepared and Insured to Financially Survive Life's Risks?
  • Will Costly Health Care Wipe You Out?
  • Follow the Quiet Millionaire's Path to Successful Business Ownership
  • College Part I: How to Manage the College Experience Successfully
  • College Part II: How to Make College Affordable
  • Retirement Part I: How to Quit Working as a Quiet Millionaire ™ and Not Run out of Money
  • Retirement Part II: How to Maximize Retirement Assets and Transfer Estate Wealth
    After each chapter, Brett gives a very good summary of all the important concepts introduced in that chapter.

    And last, but not least, the planning tools used by the Quiet Millionaire are available for download at the
    Quiet Millionaire website. Please check it out.

    I strongly recommend reading this book.


    Related Links:
    *
    Saving for Kids College Education
    * When did you start taking better care of your Finances
    * Investing Strategy for building your Nest Egg
    * Financial Planner: Do I need one ?
    * 25 Rules to Grow Rich by
  •  

    Best Regards,
    Ramakanth Reddy.

    I know you have lot of choices when it comes to surfing web.  Please visit http://www.ramidi.com when you get a chance and also visit our non-profit website http://www.ramidi.org that aims at helping needy children with their education.  Thanks-A-Lot.  Dreams are realized only when we take steps to fulfil them.
     

    Interesting trends in internet - What's the Hindi Word for Dot-Com?

    I found this article on the Wall Street Journal and wanted to share with you.  Written By CHRISTOPHER RHOADS October 11, 2007; 

    Long-dominated by English, the language of its founders, the Internet is about to take a big step toward becoming a truly world-wide Web.

    Starting on Monday, Web surfers will be able to test Internet addresses in 11 languages that don't use the Roman alphabet -- the 26 letters used in English and most other European languages.

    The development means the domain-name suffix, the part of a Web address after the dot -- such as "com" or "org" -- could now be in a language like Japanese or Hindi. Until now, that part of the address had to use the Roman alphabet under the Internet's system of addresses, overseen by the Internet Corporation for Assigned Names and Numbers, or Icann, a private, nonprofit organization. The change follows Icann's decision in 2003 to allow the part of a domain name preceding the dot, called the secondary-level domain name, to be in a language that uses a non-Roman alphabet.

    [World Wide Writing]

    Russians, for example, will be able to type Web addresses entirely in the Cyrillic characters used in Russian language -- instead of having to revert to English for the last part. The change also involves languages such as Chinese, Arabic and Korean, spoken by billions of people many of whom aren't yet Internet users.

    "There are a billion people on the Internet, which means there are five billion not on it," said Paul Hoffman, a Santa Cruz, Calif.-based programmer who created the standards behind the so-called internationalized domain names. The new names "are not for the current users, but for the next billion."

    Web users in non-Roman language countries have typically needed keyboards that could type in both Roman and local characters to access the Internet. China uses a Roman-alphabet equivalent, called pinyin, which is then converted into Chinese characters.

    English-speaking users with Western-style keyboards won't be able to type the non-Roman domain names directly into a Web browser. Instead, they will be able to access the new domain names by clicking on links from search engines or other Web sites.

    The question of international domain suffixes has been loaded with geopolitical tension. Internet users outside the U.S. in recent years have clamored for the right to have domain names in their own language. They argue their Internet culture and usage are hindered by the requirement to learn English.

    [Domain]

    The issue fanned broader discontent that the key architecture of the Internet, called the domain name system, is overseen by one country, the U.S. Icann is based in Marina del Rey, Calif., and reports to the U.S. Department of Commerce. Icann, which the U.S. government created in 1998, approves new domain-name suffixes, among other technical matters.

    The criticism came to a head two years ago at a United Nations summit, when the U.S. government fought off demands from more than 170 countries to give up its unilateral oversight of the domain-name system.

    Icann agreed to pursue internationalized domain names as early as 2000. But progress was slow, due to technical considerations and bureaucratic delays in trying to coordinate so many entities in different countries. Some critics of the process said that since Icann is based in the U.S. it wasn't a priority.

    Having lost their patience, some countries, most notably China, South Korea and some Arabic-speaking nations, as well as private entities in Europe, have created domain names in their own languages, using non-Roman letters, independent of Icann. These separate systems, known as alternative roots, can create online confusion, with duplicated domain names or multiple addresses for the same sites.

    "The Arab countries don't want alternative roots," said Baher Esmat, a former official in Egypt's ministry of communication and information technology and now a Cairo-based representative of Icann. "We just want our country codes in the Arabic language -- if that happens, then there is no reason to continue" with the alternative roots, he said. Country code refers to the domain name assigned to each country, such as dot-uk for Britain.

    In Egypt, about seven million people, or 10% of the population, use the Internet, according to Mr. Esmat. Most of the users are well-educated and speak at least some English. To get the next 10% of the population online, however, having domain names in Arabic is critical, he said. The Egyptian government is moving ahead with various e-government initiatives, such as online applications for driver's licenses, that likely would catch on only if the Web sites were entirely in Arabic, he said.

    "The potential users are not able to use the Internet unless it's in their native language," said Mr. Esmat.

    Some critics argue that enabling the growth of languages on the Web, in particular those that don't use the Roman alphabet, in itself amounts to fragmenting the Internet, since it encourages regional use around a local language rather than global interaction based on a popular language like English.

    "Theoretically all pilots speak English when trying to land a plane," said Paul Mockapetris, who invented the domain-name system in the early 1980s. The internationalized domain names are "a huge opportunity for balkanizing the Internet or uniting it -- we'll know which way it goes in about 10 years."

    The domain-name system that Mr. Mockapetris designed and that is still in use today allows Internet addresses limited to 37 characters, known as ASCII, consisting of the numbers zero to nine, the 26 letters of the alphabet and the hyphen. The Internet stems from work done in the 1960s and 1970s funded by the U.S. Department of Defense largely for military purposes.

    Now, as the Internet grows beyond its U.S. origins, myriad technical and policy questions about how other languages will actually work in domain names are cropping up.

    India, for example, has several dozen major dialects, raising the question of which one should be used for its country code in Hindi. It's not clear who would make that decision. Concerns also exist about people using characters from other languages to dupe users with bogus Web sites, a practice called phishing. Scammers have already used the Russian cyrillic 'A' to make a fake Paypal Web site. Since Arabic is spoken in multiple countries, it remains to be determined what entity decides how that domain-name suffix would be handled. Unlike in the U.S., where domain names are bought and sold on the open market, in most of these countries likely to use the new domain suffixes, governments manage and parcel out the domain names.

    "This is the first time we will see fully localized domain names," said Tina Dam, the Icann official heading up the project. "We still have to make sure that things will be secure and stable -- that's why we're testing it to make sure it works."

    Companies that sell domain names -- both the wholesale registries and the retail registrars -- expect a windfall once the names are approved. Domain names are booming, growing by 31% in the second quarter from a year earlier, according to VeriSign Inc., a registry that manages dot-com and dot-net. The bulk of that growth comes from country-code domain names, such as China's dot-cn, which more than quadrupled from a year ago.

    NeuStar Inc., which manages dot-biz, said its business in non-English domain names has grown by more than 1,000% from last year, with much of that growth in South Korea. English is still used by 31% of all Internet users, but other languages are growing rapidly online. Chinese, now No. 2 online as the language of 16% of users, has grown nearly fivefold during the past seven years, according to internetworldstats.com.

    The other non-Roman languages included in the test are Persian, Greek, Yiddish, Tamil and simplified Chinese. Icann says the languages were chosen based on the interest expressed by the various countries.

    On Monday, Icann will post links on its Web site, www.icann.org, to test sites in 11 non-Roman languages. Users can click on the links to visit the test sites, leave comments about them and create their own versions of Web pages that use the non-Roman suffixes. Icann expects working addresses in the new languages to be available by the end of next year.

    Best Regards,
    Ramakanth Reddy.

    I know you have lot of choices when it comes to surfing web.  Please visit http://www.ramidi.com when you get a chance and also visit our non-profit website http://www.ramidi.org that aims at helping needy children with their education.  Dreams are realized only when we take steps to fulfil them.  Thanks-A-Lot.

    Introduction to Intelligent Investor - Benjamin Graham.

    Here is the introduction of the Intelligent Investor book as I understand.  I liked this quote
     
    "If you have built castles in the air, your work need not be lost; that is where it should be.  Now put the foundations under them." 
     
                                                                                                                                        -- Henry David Thoreau, Weldon

     

    Graham says that he is not going to tell us how to beat the market. He also says no truthful book can.  I wish there was one, so we all be rich with out understanding the companies performance and their finances.  I am one of them who are not patient enough to read through and understand the financial statements of the companies, I would like to invest.  Believe me I learnt it the hard way that it is important to understand them, just mere reading doesn't help.

    Anyways getting back to the book.  At the end of the book we will learn three powerful lessons

    • how you can minimize the odds of suffering irreversible losses.
    • how you can maximize the chances of achieving sustainable gains.
    • how you can control the self-defeating behaviour that keeps most investors from reaching their full potential.
    The question Graham asks is "Are you an intelligent investor?"  Well we'll found out what he means by that in my next blog I am already sleepy and have a busy day tomorrow :):):)

    When you get a chance please visit my site http://www.ramidi.com and check out my other blogs.  Also please visit our non-profit website http://www.ramidi.org that helps children who need monetary help for their education.

    Benjamin Graham - Author of Intelligent Investing.

    Before we get into Intelligent investing book and learn about the investing. Let us know who Benjamin Graham is?

    Benjamin Graham (May 8, 1894 – September 21, 1976) was an influential economist and professional investor who is today often called the "Father of Value INVESTING". Value, or "defensive," investors quietly seek out bargains among under priced companies, buy into them, and then patiently wait for their fair value to be realized. Growth investors are more aggressive. They aim to buy businesses that are booming, often due to high demand for their products. While growth investors will buy a dollar hoping for it to become two dollars, value investors will try to buy a dollar for fifty cents. Both approaches have their merits, and Warren Buffett's current approach combines the two.

    In 1934, Graham co-authored with David Dodd a hefty textbook called Security Analysis. Nearly seven decades later, it's still widely used in business schools. He also wrote another book that we are looking into right now. It is called The Intelligent Investor. Warren Buffett himself has referred to The Intelligent Investor as "by far the best book about investing ever written." Pick up a copy at your local library and check it out.

    According to Jason Zweig: Benjamin Graham was not only one of the best investors but also practical investment thinker of all time.

    Best Regards,
    Ramakanth Reddy.
    http://www.Ramidi.com
    http://www.ramidi.org

    Back to Intelligent Investing book

    I was looking at different articles for quite some time and have been posting them on my blog. Hope you liked them and got benefited.  I appreciate your visits to my blog.  I have already got more than 1000 hits...   I am so happy, because most of the visits are from existing users.   I have been continuing to read the Intelligent Investor by Benjamin Graham.  Stay tuned for more information from the book and my analysis of the text.

    Best Regards,
    Ramakanth Reddy.
    http://www.ramidi.com
    http://www.ramidi.org