In the wake of the worst financial crisis since the Great Depression,
many investors are wondering how they can get attractive returns
while still being able to sleep at night. This book shows you how, using
investments that generate income.
You might ask what this means. Isn’t the goal of all investments to
generate income? Actually, there are two ways you can profit in the
financial markets. One way is to buy low and sell higher (hopefully),
thereby generating capital gains.
I read the first edition of this book early in 1950, when I was nine-
teen. I thought then that it was by far the best book about investing
ever written. I still think it is.
To invest successfully over a lifetime does not require a strato-
spheric IQ, unusual business insights, or inside information.
What’s needed is a sound intellectual framework for making deci-
sions and the ability to keep emotions from corroding that frame-...
The main ideas in this book trace their intellectual lineage to
Benjamin Graham, whom I never knew but must thank posthumously,
and Warren Buffett, whom I have the great fortune to
know and from whose writings, talks, and conversations I have
gained knowledge and insight. Neither of these men, of course, has
any responsibility for this book’s content and no doubt would disagree
with some of what it says, though it is written as a narrative
interpretation of principles they developed, to which it tries to be
With the immense increase in wealth in the United States during the last decade and its more general
distribution, the problem of investment has assumed correspondingly greater importance. As long as the
average business man was an habitual borrower of money and possest no private fortune outside of his interest
in his business, he was not greatly concerned with investment problems. The surplus wealth of the country for
a long time was in the hands of financial institutions and a few wealthy capitalists.