GAFM GLOBAL ACADEMY OF FINANCE AND MANAGEMENT  ®

Chapter 3: A Century of Stock Market History Graham provides a historical overview of stock market fluctuations, highlighting major market crashes and recoveries. He underscores the importance of understanding market history to make informed investment decisions.

Chapter 4: General Portfolio Policy: The Defensive Investor Graham introduces the concept of the defensive investor, who prefers a passive, low-risk approach. He discusses the importance of diversification and recommends a maximum allocation to stocks based on age.

Chapter 5: The Defensive Investor and Common Stocks This chapter provides specific guidelines for the defensive investor's common stock portfolio. Graham advises focusing on quality stocks with a history of stability and dividends.

Chapter 6: Portfolio Policy for the Enterprising Investor: The Positive Side For enterprising investors willing to put in more effort, Graham outlines an active approach that involves seeking out undervalued opportunities and analyzing financial statements.

Chapter 7: Portfolio Policy for the Enterprising Investor: The Negative Side Graham discusses the risks associated with an active approach and the importance of avoiding speculative practices and over-optimism.

Chapter 8: The Investor and Market Fluctuations Graham explores the psychological aspects of investing, emphasizing the need to remain rational and unemotional in the face of market fluctuations. He encourages investors to take advantage of market pessimism.

Chapter 9: Investing in Investment Funds Graham discusses the advantages and drawbacks of investing in investment funds like mutual funds, emphasizing the importance of understanding fund objectives and fees.