Warren Buffett, the world’s best stock investor, was inspired to invest in the stock market by Benjamin Graham. While he was 19 years old, he came across a book written by Graham known as “The Intelligent Investor.” this was in 1949. The book would change the life of Warren Buffett completely. He developed a certain perspective about the investing which up to date have been the plan he implements.
The book by Graham was about “value investing.” The book taught how to deal with investments in an intelligent way. Graham was a professor of business at the University of Columbia at the time. In the book, Graham was advising investors to trade undervalued stocks as they presented more opportunities in terms of gain as well as cutting the losses in case of uncertain future developments.
This book sharpened Warren Buffett’s skills in investments. Warren has an opportunity of joining the University of Columbia and being taught by Benjamin Graham. He reveals to Schroeder, one of the writers of a book known as “The Snowball: Warren Buffett and the Business of Life,” that this book changed his mindset about stock investments.
Looking back at what Buffett has achieved with Berkshire, it is clear that he clearly understood what Benjamin Graham taught in his book. Graham is the father of value investing. Buffett believes Graham was an incredible teacher who inculcated the principle of value investing in him. Graham taught Buffett two important lessons. Number one was “never lose money” and the second one was “never forget rule number one.”
Warren Buffett teaches his students how to shape the inner self and not how to make money. People should concentrate on doing the right thing. Perfecting skills and developing self-confidence in what one is doing makes a lot of sense in this industry. Warren Buffett believes that being honest in his business dealing has paid him off than he would have if at one point he turned dishonest.