The Intelligent Investor

Investors should not fall for the hype, take recommendations without doing independent research, or think that past performance guarantees future growth.

To avoid buying a stock when it is already too expensive to offer a good, long term return, investors should define their preferred price-to-average earnings ratio.

The level of risk an investor should take depends on how much time they have to devote to research and management

Investors should split their portfolio between bonds and stock.

The recommended percent of the portfolio that can be spent on higher-risk transactions should not exceed ten

The level of risk an investor should take depends on how much time they have to devote to research and management.