“The Intelligent Investor” by Benjamin Graham is a foundational work in the field of value investing. First published in 1949, it has been updated several times, including editions with commentary by Jason Zweig that help relate Graham’s ideas to contemporary markets. 

It is the favourite book of Warren Buffett, one of the world’s greatest investors.

Below is a brief summary of each chapter from the revised edition that includes Zweig’s commentary:

Chapter 1

Investment versus Speculation: Results to Be Expected by the Intelligent Investor

Graham defines the differences between investing and speculating, emphasizing the disciplined approach of investing for long-term growth and safety of principal.

Chapter 2

The Investor and Inflation

This chapter discusses the impact of inflation on investments and strategies to mitigate this risk, including diversification and investing in stocks.

Chapter 3

A Century of Stock Market History: The Level of Stock Prices in Early 1972

Graham examines the history of the stock market to illustrate its volatility and the importance of historical context in making investment decisions.

Chapter 4

General Portfolio Policy: The Defensive Investor

Graham outlines a conservative strategy for the defensive (passive) investor, focusing on portfolio diversification and safety.

Chapter 5

The Defensive Investor and Common Stocks

This chapter offers guidance on how defensive investors can safely include stocks in their portfolios, including criteria for stock selection.

Chapter 6

Portfolio Policy for the Enterprising Investor: Negative Approach

Graham discusses more aggressive strategies for the enterprising (active) investor, including what to avoid.

Chapter 7

Portfolio Policy for the Enterprising Investor: The Positive Side

Further strategies for the enterprising investor, focusing on what to actively seek out, such as undervalued stocks or niche markets.

Chapter 8

The Investor and Market Fluctuations

Graham talks about how to deal with market fluctuations, emphasizing the psychological aspects of investing and the concept of “Mr. Market.”

Chapter 9

Investing in Investment Funds

This chapter evaluates the pros and cons of investing in mutual funds and other pooled investment vehicles.

Chapter 10

The Investor and His Advisers

Graham provides advice on how to select a financial adviser and the role they should play in an investment strategy.

Chapter 11

Security Analysis for the Lay Investor: General Approach

An introduction to analyzing securities, focusing on a few key concepts essential for the average investor.

Chapter 12

Things to Consider About Per-Share Earnings

Graham dives into the complexities of earnings per share and what investors should be mindful of.

Chapter 13

A Comparison of Four Listed Companies

Through a comparison of four companies, Graham illustrates how to apply the principles of security analysis in practice.

Chapter 14

Stock Selection for the Defensive Investor

This chapter provides specific criteria for selecting stocks suitable for the defensive investor, emphasizing safety and steady returns.

Chapter 15

Stock Selection for the Enterprising Investor

Here, Graham offers criteria for the enterprising investor willing to undertake more risk for potentially higher rewards.

Chapter 16

Convertible Issues and Warrants

Graham discusses the ins and outs of convertible securities and warrants, and how they fit into an investment strategy.

Chapter 17

Four Extremely Instructive Case Histories 

Graham presents four case studies to illustrate common pitfalls and successes in investing.

Chapter 18

A Comparison of Eight Pairs of Companies

 By comparing pairs of companies, Graham teaches how to differentiate between seemingly similar investment opportunities.

Chapter 19

Shareholders and Managements: Dividend Policy

This chapter focuses on the relationship between shareholders and management, particularly regarding dividend policies.

Chapter 10

“Margin of Safety” as the Central Concept of Investment

Graham concludes with a discussion on the importance of the margin of safety, the key principle underlying all investment decisions according to Graham.

Each chapter builds upon Graham’s philosophy of value investing, focusing on investor psychology, financial analysis, and the inherent risks and rewards of the stock market. His teachings emphasize a disciplined approach to investing, with a focus on long-term stability and capital preservation.

The beauty of this book is that almost any who is interested in the stock market can understand its concepts and apply most of them very profitably.

Chapters 8 and 20 are Warren Buffett’s favourite and most recommended chapters for investors to read and gain from.