GAFM GLOBAL ACADEMY OF FINANCE AND MANAGEMENT  ®

The Author, Graham defines investment as: “The result of a thorough fundamental analysis in the company in which you invest, which results in the promise of “safety of principal” and adequate return.

2.  Chapter 2- Investors and Issues of Inflation

Most do not understand that savings are not risk-free: the risk is that your yield will not keep up with inflation. For example, with inflation, a candy bar that costs a dollar today could cost two dollars ten years from now. If your investment doesn't grow as fast as inflation, it is the same as losing money and losing buying power.  

3.  Chapter 3 - Stock Market History:

The market continues to go up over the years. It is difficult to time the market. If you missed the top 10 up days in the market over the last 20 years, you would have missed huge percentage gains.  This chapter concerns the data of stock prices, earnings, and dividends as it has existed over the last 80 years.  

4.  Chapter 4 - General Portfolio Policy: The Defensive Investor

Defensive stocks would be those who do not fluctuate downward as much as the market indexes. Greater risk does not guarantee better reward.   Defensive investors should divide their funds between quality bonds and blue chip common stocks. In selecting bonds, there are many issues to consider such as stability, yield, safety, pending inflation etc.