ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Become a Good Investor?

Updated on August 12, 2020
talesofvikram profile image

Vikram Brahma is a Digitalpreneur, Author, Blogger, Writer, & YouTuber. He loves to write content & spend time working from home.


If you ask me personally how can we earn more money and become wealthy in this life? And what are the ways through which we can achieve this? Then my simple answer would be to “start investing” your money to grow your money.

If you check in a deeper level we are investing something to gain something in life. For example, in a job, you invest your time and effort to earn money. In the same way, investors, invest money and earn more returns. Therefore, if you want to become rich and wealthy in life then start investing money.

In this article, we are going to learn some lessons about investing mentioned in a book called “The Intelligent Investor” which is authored by Mr Benjamin Graham. By the way, the world’s best investor Mr Warren Buffett consider this book as the world’s best book on investment. So, let’s get started.

The Intelligent Investor by Benjamin Graham
The Intelligent Investor by Benjamin Graham

Aggressive Vs Defensive Investors

In the stock market industry, there are probably three kinds of investors. But to understand our first point we will talk about two basic types of investors. They are known as aggressive and defensive investors.

Aggressive investors are those investors who like to invest money on those stock, bonds etc from where he can expect high returns within a short time. Whereas defensive investors are those investors who like to invest in less risky stock and may even get medium returns instead of high returns.

Well, any layman will say it’s better to become an aggressive investor. The truth is although it looks more promising then defensive investors, in the long run, becoming a defensive investor is the best option. This is one important lesson which you can learn from this book. Remember in the stock market rule is high risk can also mean either high rewards or a high loss. Defensive investors are also known as passive investors.

Understand The Stock Market Concept

The stock market is a wonderful concept where you can start your business even by investing Rs. 500/-. Now let’s understand the stock market differently. Suppose you are the owner of one business and you have a friend called Mr Market. Your friend is very emotionally by nature. He can purchase your business or even like to sale his business.

But because he is emotional by nature, offers are based on his emotions. For example, when he is happy, he is ready to purchase your business by paying you more money. But when he is not happy he doesn’t want to give you even half of your price.

The stock market is also like this. Any business and deals on the stock market depend upon the mood of the market. But the good part is they never force you to sale or purchase any business. It entirely depends upon you and your requirement. So, always sale stock when you are getting more then what you have invested and vice-versa.

Divide Your Investment Portfolio In 50:50 Ratio

As per this concept, you shouldn’t invest everything you have in your pocket. For example, suppose you have $10,000/- then invest only $5000/- in stock and keep rest in cash. Never invest everything you have. In this way, you will have some amount of hard cash in hand. And when you earn some profit, withdraw your profit and reinvest the remaining one and continue this process.

Diversification And Large Companies

As per this rule, never invest all your money in a single company. You should diversify your investment plus don’t invest in a single type of business. Apart from this, you must mostly invest in large companies and never invest in many unknown companies.

Well, the second part is advised because the most investments are done after study and research but since most people don’t have that much time, therefore, it is advised to invest in the large well-established companies because we all know about them. So, will you like to invest in Apple’s shares or some holo company?

If you are interested to purchase this book, kindly click here and thanks in advance for purchasing the book. Get this book.

Conservatively Financed And Dividend History

These points tell us to invest in those companies which are financially strong and they have more number of assets than liabilities. They are making a good income year on year basis and have less debt. You need to check the dividend history of the company. They must be paying the divided from last 10 to 15 years. During your research, if you can find such companies then definitely you should invest in those.


These are some of the basic tips shared by Mr Benjamin Graham in his book. But if you want to understand more about investment then I will highly recommend you to read this book. This book contains many more amazing points about investment.

Start investing if possible get some online course on the stock market, self-study and then get a mentor who can guide you in the right direction. Without a mentor, it would be very difficult to understand the stock market.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2020 Vikram Brahma


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)