The Intelligent Investor

Note: The summary sections below cover both Graham’s text and Zweig’s commentary. Both authors make references to their present time periods in relation to the past and the future. Graham writes from the perspective of the early 1970s, whereas Zweig writes from the perspective of the early 2000s.

Graham establishes what the reader can expect—and not expect—to find in the chapters that follow. He states that The Intelligent Investor will center on investment principles, the psychology of investors, and historical patterns in the stock market. He emphasizes that knowledge of the past is key to investing intelligently.

Graham clarifies that the book is intended to advise investors rather than speculators, noting that this “now all but forgotten distinction” will be made even clearer in subsequent chapters (1). He also declares that “this is not a ‘how to make a million’ book. There are no sure and easy paths to riches on Wall Street or anywhere else” (1).

To illustrate this point, Graham provides an example of a businessman named John J. Raskob, who wrote an article in 1929 titled “Everybody Ought to Be Rich.” Raskob told people that investing just $15 per month in stocks would produce $80,000 in 20 years.