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Intelligent Investor and it's even denser cousin, Securities Analysis (both by Graham) are often touted as must reads without the recommender actually reading t
by acconrad 11y ago
Intelligent Investor and it's even denser cousin, Securities Analysis (both by Graham) are often touted as must reads without the recommender actually reading them.
I have read both and you can safely skip most chapters. I can summarize for you, that based on your description in this post, you are what Ben Graham calls a Defensive Investor, as you want to preserve capital without being able to make significant time or resources towards exploring companies in-depth.
The modern way to be a Defensive Investor is to invest 50-50 in a stock and bond ETF/index fund, such as VTI and BND. It provides broad, safe exposure that mimics how you would have done it in Graham's day. If in the future you find wanting to put the time into your investments, that is when I would consider becoming an Enterprising Investor, at which point you should read that chapter in II, and read Margin of Safety.
- burp3141 11y agoAgree completely. I found Margin of safety much more practically applicable than Graham's books and much more enjoyable read.
- fiftyacorn 11y agoIve read Intelligent Investor twice - and there is a chapter midway through the annotated version which basically says that if you arent willing to put in the time finding value shares then stick with passive investing in low cost funds. I also read Buffetts share letter and he frequently touts how well passive investing would do, even with respect to Berkshire Hathaway Im purely passive now based mostly on bogleheads
- n13 11y agoWould you please mind giving some examples of low-cost ETFs?
- acconrad 11y agoI gave you examples! VTI, VOO, VXUS, BND, BNDX
- fiftyacorn 11y agoI use the Vanguard Lifestrategy funds so i dont even have to rebalance at the end of the year. These funds let you contribute - 80%share/20%bonds, 60%share/40%bonds, ... based on your age or risk profile. They also include a global component to your portfolio