Preview. Written from general knowledge to guide your reading. It's replaced by full study notes once you record this chapter.
What to listen for
- Graham's rules for the defensive investor's stocks: adequate diversification, large and prominent conservatively financed companies, a long dividend record, and a price limit tied to earnings.
- Dollar-cost averaging, buying a fixed amount regularly, is a way to remove the urge to time.
- Listen for his caution about 'growth stocks': the risk is paying too much for growth everyone already sees.
- Rule #1 link: compare these rules with the Big Five and Town's tranche buying.
Record this chapter
Read it (and Zweig's commentary) aloud, or record your own takeaways afterwards. Then upload the file as ch05.m4a (or ch05-part2.m4a, ch05-commentary.m4a, ch05.txt) to your private ruleone-library repo.