THE INTELLIGENT INVESTOR in HINDI - BOOK SUMMARY ये करो अमीर बन जाओगे - YouTube

Hello Friends,

if you ask me one thing which can make you very rich

so for it i will say that you need to become a good investor

now if you say that you are not an investor

then i will say Nope Thats not true

because we all are investors, some invest money, some invest their time and energy by doing jobs or businessess

at a deeper level we all invest something to earn money

hence it is important for us to be a great investor

and if i keep this philosophical talk aside,

if you want to be rich then you have to invest at any moment in your life

either you earn by doing job or by doing a business

hence it is very important for you to be an Intelligent Investor

if you ask me any one book related to investing which is a must read then i will say "INTELLIGENT INVESTOR."

This is not only my personal opinion same thing is also said By Warren Buffet

warren buffet is 3rd richest man in the world (2019)

he is still considered as one of the best investor in the world

warren buffet says That Intelligent investor is the best investing book and this book is written by his Mentor

Benjamin Graham, he learnt from and it became so successful and rich today

not only Warren Buffet but Investor gurus also considered this book as an Investing Bible

truly this is one of the best book , therefore today i will share some of the core fundamentals of this book

which you can understand easily and can become a great investor and a successful person

so let's begin

no.1) Aggressive vs Defensive

suppose there are two friends both wanted to become rich hence they invest money

there are many similarities in both of them, both are intelligent, has almost same wealth

but the only difference they have is that one is an Aggressive investor

ad the other friend is a Defensive investor, one friend believes the more we take risk the more we earn

therefore he invest on stocks which gives quick high returns,

whether the company has any reputation or not that doesn't worries him

whereas the defensive friend is exactly opposite of him

he invest only those stocks and mutual funds where he can get returns at the lower risk

even if returns are average, he is fine with it.

now one day Aggressive investor meets his defensive investor friend and tells him

that he has got 60 percent profit on his one stock

to which his defensive investor friend thinks oh.. even after combining all four investment of mine

i haven't got this much profit which he has got in one stock

now after this much story if we judge then obviously all will say that Aggressive investment is better

but if we see both investment in detail only then we will know the real truth

Defensive friend had made four investments in four months

and in all four investments he had invested 10 k

for which he has got 5 percent profit in his first investment

in second investment he faced 2 percent loss, in third he got 12 percent profit

and in last investment he got 20 percent profit

in total he got 43,500 Rupees, that is 8.75 percent profit

now this isn't the best returns but lets first check aggressive investor profits and loss

he invested in 8 different stocks cost 40 k in 4 months

in first stock he faced -50 percent loss

in second stock he had 60 percent profit about which he was talking to his defensive friend

in third stock he got 5 percent profit and in 4th he faced 10 percent loss

and this way after facing profit and loss in all stocks the amount which he got was 40,800

means he got just 2 percent profit, and this is the problem of Aggressive investment

because with high returns there is also a high chance of high loss

which eventually destroys the profit in long run

it is exactly like gambling where you will win for once but will lose so many times that your life can be devastated

Benjamin says its an investing fact that in low risk you will get low rewards

and the moment you think of high rewards the risk factor also become high

but maximum time low rewards are better than taking high risk

lesson second: Mr Market

An Interesting concept which Benjamin has shared in this book is - share market's Mr. Market concept

suppose you are an owner of a business and you have a partner named Mr. Market

Now Mr. Market comes to your home and gives you different-different offers

You can either buy his business or can sell yours

now an interesting thing: Mr Market is a very emotional person

he is normal but in the flow of emotion he sometimes gives more than value or less than value

example: suppose your business intrinsic value is 1000 rupees

but Mr. Market doesn't care about it

when Mr.market is happy he is ready to give 2000

but when he is upset then for 1000 rupees business he is not even ready to give 500

but the best part is Mr. Market never force, he will never force you to buy or sell your business at any price

he just gives Opportunity

now this parable is simple and very deep

because truly stock market=Mr.Market is not logical always in fact it changes as per the people's emotions

and sell things to people in lesser or at higher price of its actual value

Therefore Benjamin says that if you want to be an intelligent investor then do business with Mr. Market

when he is selling a business less than its actual value

and sell when you are getting more than your actual business value

Lesson Third: Defensive investors

These are the investors also known as passive investors

means who do very less trading

Benjamin Graham usually ask people to be a Defensive investors

because fact is many people don't have enough time to do a research on one-one company

and then study them and then come to a decision when to buy or sell the stocks

therefore even i will suggest you to be a defensive investors

who play long term and play safe

now i will share 9 fundamentals which will help you to become a great defensive investor

First- to be a defensive investor divide your portfolio is 50-50 percent

example: if you have 1000 rupees to invest then invest 500 on stocks and keep 500 in bonds or cash

or invest in other investment options and Maintain this 50-50 percent ratio

suppose if you get 10 percent profit on stock and you have 60 percent money on stocks

then remove 10 percent from it and again maintain 50-50 percent ratio

and do it on a specific interval means invest in the month start when you get your salary

will have less risk with the help of the concept known as Dollar Cost Average

there are 8 more things on which defensive investors must focus, i will share it in brief

No.1) Diversification

means invest in 10 to 20 companies that to in different-different industries

no.2) Large companies

invest in big companies which are established from several years

no.3) Conservatively financed

invest in companies which are conservatively financed whose current ratio should be 200 percent

companies whose assets should be mora than its liabilities

4the Dividend History:

invest on companies which are giving dividend continuously from 10-20 years

5th- Earning History: Invest on companies which did not had earning deficit from last 10-20 years

6th- Growth

invest in companies which are growing with 3 percent every year from 10 years

7th cheap assets-

invest in companies whose stock price should not more than 1.5 percent times from its Net Asset value

8th or can say 9th- Cheap Earning-

don't give much money for earning means whose P.E ratio is less than 15 for last one year buy those.

now many can find this very complicated hence there is an easy alternative too

known as low risk mutual funds and index funds

now if you can be happy with an average returns by keeping your expectations low

which is taught to us by Benjamin and Warren

then these three points along with last point is important

but still want to go to high returns then 4th point will help you

which is 4th lesson- Enterprising Investors

actually there are three types of investors first- Defensive, second Aggressive

about which i've already discussed

and third type is Enterprising investors, it comes in between defensive and aggressive

Enterprising investors don't want an average returns like Defensive investors

nor they take risk on the basis of illogical speculations like Aggressive investors

in fact they are the ones who do lot of research and invest their lot of time and then do investment

they are actually very active and hence usually they are the ones who able to beat the market

by showing amazing results, but the problem is to be such investors

there's a need of lot of research and efforts and along with these two

there should be 4 more thing in such investors

first: Patience second:Discipline third: Eagerness to learn and 4th: lot of time

normally people fail to do this hence Benjamin recommends its better to be a defensive investor

if a person wants to be an enterprising investor then it can be done through 4 activities

first: Go against the market

means to buy when others are buying & when market is down

and to sell when market is good and others are buying

and this should be done by investing his minimum 25 percent to max 75 percent money

compare to 50-50 percent ratio which Defensive investors do

2nd- Buying Growth Stocks

to buy a growth stocks an investor should buy a company which is big but not popular

3rd- buying bargain stocks

bargain stocks are those stocks which are sold in less than its intrinsic value reason can be any

try to get such companies which you get in less amount but should be well established

4th- by buying special cases

here those small companies stocks will come which big companies are going to acquired

lesson 5th: Margin of Safety

suppose a ship writer wants to make a ship which should handle 50 people's weight

now for this he won't create a ship which only carries 50 people's weight

instead he will make that ship so strong

that it will be able to handle 50 or 100 people's weight

he will do that because by that there will be a safety that ship won't sink

now the consideration of this extra weight is known as Margin of safety

same thing even you should consider while investing

you must be aware that the price of a stock in the stock market is not as same as its real value

hence by keeping margin of safety in mind Benjamin recommends not to give more than 2/3rd of its value

see maximum people's problem is that they buy 50 dollar value stock in 50 dollar only

and expect that its price will rise in future and it will benefit them

however an intelligent investor is who keep margin of safety and buy that 50 dollar stock in 40 dollars

and gets profit immediately after buying it and don't need to be depend on the market

these were the 5 big and important points from an amazing book Intelligent investor

if you want free audio book of this book or Tony Robbins Unshakeable book

then can take it from seeken.org/audible

audible is an amazon company which gives one month free trial and only then they will charge you

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