IP & Art

"The Intelligent Investor" of Benjamin Graham provides much insights in investing on stocks. HIs concepts is so bright that any current stock investor should keep in mind his tips in investing on the stock.

He created a variety of new concepts such as Mr. Market, Margin of Safety, Defensive investor, and Enterprising Investor, etc. 

Especially, his advise in relation to " defensivne investor" is attracting our attention so far.

He advise any investor to be a defensive investor to keep the following investments principle.

He emphasized that the investor should check certain criteria in selecting stocks to be invested on in terms of diversification(10- 30 numer of stocks), large company( may be personally revised in the modern times more than 1 billion), good financial conditions in the conservative perspective, Dividend outcome, No earning deficit, good earning growth, etc. as a kind of margin of safety.

In addition to that, he emphasized the regular investment in terms of buying the sotcks. It is based on his thinking that the stock is an owner ship interest in a business, and therefore, keep the stocks as if the investor is a partner of the company to be invested.

Further, it is very difficult for the ordinary investor to get more profit than the market profits. And therefore, just investing on index fund will be wise in terms of efficient in terms of taking into consideration costs and outcome ratio.