I came here to say comment on "The Intelligent Investor", too. If anyone is interested, I have a summary [0]. I recall Graham recommending that if you don't hav

I came here to say comment on "The Intelligent Investor", too. If anyone is interested, I have a summary [0]. I recall Graham recommending that if you don't have time to research individual stocks to buy an index fund, but I can't find that in my summary. (My edition is the 1972 edition, I'm not sure if index funds existed in 1949.) If that is correct, then the advice to buy a mutual fund rather than individual stocks is completely due to the efficient market theory. Graham's logic was definitely not due to EMT, and given that he was a value investor, he would have rejected EMT, since you obviously can't buy at a discount if the market is truly efficient. (I've never been able to figure out how EMT believers manage to maintain their faith in the face of rather large market corrections and well-documented bubbles, but that's not exactly related.) [0] http://geoffprewett.com/BookReviews/IntelligentInvestor.html http://geoffprewett.com/BookReviews/IntelligentInvestor.html