List of Top 7 Best Books by Benjamin Graham
Benjamin Graham was an investor, economist, and professor with extensive knowledge of finance. He is known to have established disciples in this field, the most prominent being Warren Buffet. Below is the list of the top 7 books of Benjamin Graham:
- Security Analysis ( Get this book )
- The Intelligent Investor ( Get this book )
- Benjamin Graham on Investing ( Get this book )
- The Intelligent Forex Investor: World Currency and World Commodities ( Get this book )
- The Intelligent Investor – Audio Cassette ( Get this book )
- The Interpretation of Financial Statements ( Get this book )
- Benjamin Graham: The Memoirs of the Dean of Wall Street ( Get this book )
Let us discuss each of the Benjamin Graham books in detail and their key takeaways and reviews.
#1 – Security Analysis (Sixth Edition)
Initially written by Benjamin Graham and David Dodd, the book is one of the most established series in financial analysis.
Key Highlights from this Top Benjamin Graham Book
- Teaching the investors a new/enhanced approach for assessing the business that lies behind the security.
- A brief introduction by Warren Buffet and the benefits he has drawn from this book.
- Professionally trained investors can utilize the corporation’s financial analysis to calculating the intrinsic value.
- It further explains how one can use Graham’s margin-of-safety principle to make a profit. The objective is to show the investors how stocks are bought when the stock price is below the original, thereby earning a good level of returns in good times.
- It contains multiple real-life instances for highlighting the tendencies of markets to undervalue securities, which otherwise seem to be unfavorable. It also shows how one can extract maximum benefits if the fundamentals are strong.
#2 – The Intelligent Investor
This book is one of the most widely acclaimed books by Benjamin Graham on value investing. This Benjamin Graham book aims at preventing potential and current investors from substantial errors while teaching various strategies for achieving long-term investment goals.
Key Highlights from this Best Book by Benjamin Graham
- The book highlights various principles and strategies for safe investment without taking high risks.
- Some important concepts useful for the latest financial orders and plans explained in crisp and concise language.
- All concepts and principles essential for day-to-day financial transactions are explained with simple examples for better clarity and understanding.
One of the reasons this best book by Benjamin Graham is preferred by modern-day investors is due to the lethal combination of an original plan by Benjamin Graham and the current financial situation.
#3 – Benjamin Graham on Investing
As the world entered the difficult phase of World War I, the stock market witnessed unprecedented ups and downs, with the government seizing control over inflation and interest rates and the threat of economic depression looming.
This Benjamin Graham book is a collection of articles that appeared in the “Magazine of Wall Street,” written early in the life of Benjamin Graham.
Key Highlights from this Best Benjamin Graham Book
- High emphasis is on the balance sheet and reading between the lines of the numbers. One can highlight the fundamentals of the company through such analysis.
- Though some of the concepts can be of significant use in the modern era, the fact that he wrote this book in a different decade and era may make the connection to the current concepts a little easier. For instance, ROI and ROE are very extensive today, which may have been different during World War I.
#4 – The Intelligent Forex Investor: World Currency and World Commodities
Through this top Benjamin Graham book, the author displays tremendous foresight on how commodity reserves should play a critical role in economic policy.
Key Highlights from this Best Benjamin Graham Book
If the value of commodities stabilizes, the economy can achieve the following objectives:
- Foreign-exchange stability
- Price Stability
- Protective stockpiles
- Healthy balanced expansion of the world’s output and consumption of essential goods.
The emphasis is on commodities since the condition of the overall economy was grave post-World War, and the value of commodities was critical for survival and possible revival of the global financial condition.
Apart from these books, the videos in this Trading Comp Valuation Course can help build a deep understanding of different valuation concepts. The real-world examples in the course can provide practical knowledge and vital insights.
#5 – The Intelligent Investor – Audio Cassette
This best Benjamin Graham Book is known to have inspired hundreds of people, demonstrating that the continuous success of common stocks shall not be taken for granted. In addition, it offers a detailed analysis of the author’s quotes of wisdom and raw experience in investing.
Key Highlights from this Best Book by Benjamin Graham
- The stock should be considered an ownership interest within the business, and not underlying value should be unrestricted on the share price.
- The market is a pendulum that will keep swinging between optimism and pessimism, and the intelligent investor sells to optimists and buys from a pessimist.
- The future value of every investment is a function of its present price. Therefore, the higher one pays, the lower return will be.
- With the development of courage and discipline, one can easily tackle artificial pressure, which other people’s mood swings can create. An investor’s behavior will go a long way in deciding the strategy and fate of an investor.
#6 – The Interpretation of Financial Statements
Though written a long time back, this book by Benjamin Graham is relevant presently for value investing. It is a short book through which readers will learn to analyze the financial statements – balance sheet and income statements of a company to arrive at a true understanding of the financial position and earnings record.
Key Highlights from this Top Book by Benjamin Graham
- As highly practical and accessible, it is an essential guide for all business people and is considered an excellent companion to the book ‘The Intelligent Investor.’ Both these books by Benjamin Graham can provide a deep insight into the overall financial world and how one could smartly maximize their investments.
- Due to the clarity of the individual balance sheet and income statement items, educational institutions have also used the book to impart an understanding of finance and accounting. Concepts such as return on tangible net assets and book value have been successfully touched upon. It is a quick and informative read with some insights on making heads or tails of what you are looking at with an annual or quarterly report.
#7 – Benjamin Graham: The Memoirs of the Dean of Wall Street
by Marjorie G. Janis, Benjamin Graham, and Elaine G. Safer
As the book’s title suggests, it covers the memoirs of one of the world’s most distinguished investment gurus – Benjamin Graham. His work laid the foundation of modern security analysis.
Book Review
When Benjamin Graham died at 82, he was one of the greatest legends of Wall Street, and his reputation has only enhanced with time. This book is an autobiography of Graham published 20 years after his death, and there is absolutely no investment advice. Instead, this book presents an enthralling account of the life events of Graham, which can be captivating for Wall Streeters and historians alike. In other words, it is a book you should read if you are excited to gain in-depth knowledge about Graham’s personal life without expecting investment advice. The book has successfully portrayed an entertaining narrative of Graham’s life from childhood through investing years to his struggles as a playwright. It is in Victorian and impersonal English.
Key Takeaways
- This book offers you the opportunity to peek into the life of one of the most renowned investors in the history of Wall Street.
- It is a great read for people who follow value investing, as Benjamin Graham is the founder of value investing.
- If you are looking for actionable investment advice, this book is not for you as there is no investment advice.
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