What are the limitations or shortcomings of this book?

## 1. Vast Differences in Historical Context: "Old Maps" Can’t Find "New Continents"

Graham wrote primarily in the mid-20th century, an economic world utterly different from today.

Era’s Economic Structure: Dominated by industry and manufacturing. A company's worth largely depended on tangible "hard assets" like factories, machinery, and inventory—things you could see and touch.
Today’s Economic Structure: Dominated by technology, services, and branded consumer goods. What comprises the core value of companies like Apple, Google, or Tencent? It’s "soft assets" like brands, patents, user data, and network effects—elements difficult to capture directly on financial statements.

Analogy: Graham’s valuation methods are like a craftsman who only knows how to measure length with a ruler. Ask him to assess the artistic value of a painting or the viral potential of a song, and he’s stumped. His famed “cigarette butt investing” approach (Net-Net investing)—finding companies trading below their net current asset value—is virtually extinct in today’s markets, especially on major exchanges like US or Chinese A-share boards. Using his filters, you might struggle to find a single viable candidate in a year.

## 2. Overly Rigid Definition of "Assets"

This point is related to the first. Graham placed immense weight on Book Value – the net asset value on the balance sheet. He believed stock prices shouldn’t stray far above this value.

This is clearly outdated.

Kweichow Moutai’s value lies in its brand and unique fermentation process, not its factory buildings.
Microsoft’s value stems from its Windows/Office ecosystem and cloud computing dominance, not its office real estate.

Ignoring Graham’s low Price-to-Book (P/B) ratio standard? You’d be almost certain to have missed investing in all the great tech and consumer stocks of the past two decades. You’d have deemed them "too expensive," missing multiple bull markets entirely.

## 3. The Revolution in Information Availability

In Graham’s era, information asymmetry was massive. A key factor in his success was his detective-like diligence in combing through boring financial reports—documents ordinary people lacked access to or simply couldn’t be bothered reading—to uncover undervalued "gems." This was a genuine information edge back then.

Now?

Everyone is "rich in information, but poor in attention." Financial data, research reports, and market news flood our screens via apps in seconds. Access to raw information for individual investors is nearly indistinguishable from that of institutional players.

Therefore, the modern challenge has shifted:

Past: How to discover information others didn't know?
Present: How to filter true insight from the vast ocean of junk information, and maintain independent thought immune to the noise of market emotion?

Graham’s methods don’t directly teach you how to navigate today’s information overload and algorithmic trading.

## 4. Steep Learning Curve for Reading and Practice

Honestly, the book is... quite tough to read.

Unlike many modern finance books that use stories and case studies for easy absorption, this one reads more like a rigorous textbook. Filled with jargon and historical data analysis, it demands significant patience.

More crucially, the "investor discipline" it requires is counterintuitive. For instance:

Buying greedily when the market is gripped by panic.
Maintaining cold rationality when the market is euphoric.
Holding long-term, ignoring short-term fluctuations.

This is far easier said than done! For ordinary investors bombarded daily by stock price fluctuations and sensational headlines, achieving Graham’s advocated outlook of the "Mr. Market" parable—remaining detached and disciplined—demands extraordinary psychological fortitude and contrarian thinking. That in itself is a very high barrier to entry.

### So, How Should We View This Book?

After all this “criticism,” does that mean the book is useless? Absolutely not!

The greatest value of The Intelligent Investor lies not in specific valuation formulas or stock-picking criteria, but in the investment philosophy and mental framework it established. These core ideas are timeless:

The "Mr. Market" Metaphor: Viewing the market as an emotionally unstable partner whose mood swings you exploit, rather than follow. This is the supreme mindset for navigating volatility.
The "Margin of Safety" Principle: Always aim to pay 40 cents for a dollar's worth of business. This is the essence of risk control in investing.
Distinguishing "Investment" from "Speculation": Constantly reminding yourself: are you analyzing business value or merely betting on price movements?

Therefore, the right way to read The Intelligent Investor is this:

Treat it as a "mindset manual" for cultivating your investing inner strength, not as a step-by-step playbook of moves to copy by rote. Learn its ways of thinking, risk awareness, and investment temperament. Then, equipped with these, adapt its core principles using modern tools and methods for today's market to find the "margin of safety" relevant for our era.