|Statement||by J. Loren Hastings ...|
|LC Classifications||HG4539 .H35|
|The Physical Object|
|Number of Pages||35|
|LC Control Number||36017879|
Inflation is an economy-wide, sustained trend of increasing prices from one year to the economic concept, the rate of inflation is Author: Troy Segal. Chapter 1 – Investment Versus Speculation: Results to Be Expected by the Intelligent Investor Graham gets down to business. In only the second paragraph of the chapter, he specifies the difference between investors and speculators: An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. In a low rate, low inflation world, growth stocks tend to perform better while value stocks tend to do better when inflation is higher: Think about growth stocks like they are a bond. The reason inflation is such a big risk for bondholders is because the purchasing power of your fixed rate income payments is eroded over time by inflation. Inflation was higher in and , topping out at percent, by which time the S&P had long returned to positive performance, though on an inflation-adjusted base. It was a lost decade.
This is Part 1 of our book review of The Intelligent Investor, Revised Edition, Updated with New Commentary by Jason Zweig (affiliate link). Part 1 covers Chapters 1, 2, & 3 with the topics being Investment, Speculation, Inflation, and Market History. buy at book value part of an enterprise that, in the economic environment then existing, was worth a great deal equity return that is comfortable above the bond return—and 12 percent on equity versus, say, 10 percent on Buffett: How Inflation Swindles the Equity Size: KB. An unabridged audio version of the Revised Edition of The Intelligent Investor was also released on July 7, Book contents. edition. Introduction: What This Book Expects to Accomplish; Commentary on the Introduction; Investment versus Speculation: Results to Be Expected by the Intelligent Investor; The Investor and InflationAuthor: Benjamin Graham. The investor would receive the same $6 cash dividend, but it would now represent only a 4% return on his $ cost. The book value of the business would still increase by 6% (to $) and the market value of the investor’s holdings, valued consistently at % of book value, would similarly increase by 6% (to $).
Inflation affects every consumer, business person and investor in some way or other. Inflation is one of the key factors that affect consumer prices, financial markets including Stocks, Bonds and Forex. As such, it is important for consumers, investors and traders to get a deeper understanding of what is inflation and what causes it. TIPS (Treasury Inflation-Protected Securities) are US government bonds that provide a specific after-inflation return (i.e., “real return”) as compared to traditional “nominal” bonds which provide a specific before-inflation return.. We’ve discussed before when it makes sense to use individual TIPS as opposed to TIPS we’ve never discussed when to . The Last Argument of Central Banks: Asset Inflation Versus Price Inflation Posted By: Mauldin Economics , If you want great detail, I suggest you get my good friend Gary Shilling’s latest book on deflation (of four that I know of), called The Age of Deleveraging. Asset Inflation Versus Price Inflation. 12 Books That Every Investor Should Own Widely considered the best value-investing book of all time, "The Intelligent Investor" is the bible of .