The Intelligent Investor

Takes long term risk averse approach

Warren buffet himself follows above mentioned

Intelligent investors don't rush in they take time to research long term value of company.

Yes investment is worth the risk.

Investments based on Speculations are risky.

Buy when price is below intrinsic value.

Intelligent Investing principle:

• Analyze longterm prospect of company

• Look at companies history

• Companies earning Consistent profits

• Protect against serious loss, Diversify portfolio, never put all eggs in one basket

• Analyze steady dividends, management, financial history.

• Understand that you won't pull extraordinary profits but you will get regular revenue

• Understand importance of stock market history.

• Ensure that take a hit in stock market crash.

• Understand ups and downs are part of market.

• Look for correlation between stock price, dividends, company history, earning, inflation rate.

• Don't trust the crowd or market.

• Defensive Investor Portfolio should be safe, well balanced, easy to manage, risk averse, invests in bonds, invest in 50% bonds 50% stocks, diverse stocks, invest in old companies, align with well established funds, always take expert opinion they know game better than you.

• Use formula Investing, decide how much and how often, known as dollar cost averaging, find stocks and set your investment on autopilot, check from time to time, revisit every 6 months and readjust, consult expert once a year.

• Successful Enterprise Investor:

  • Increase your weightage in stocks than in bonds

  • Limit High risk High reward stocks in your portfolio to max of 10% of your portfolio.

  • Buy in low and sell in high.

  • Regularly revisit your portfolio.

  • Invest virtually for a year and then bargain