Review of “The Intelligent Investor” by Benjamin Graham: Value Investing Insights

Almost all ETFs charge expense ratio fees, to cover their operating costs. This makes Schwab Intelligent Portfolios Premium a great deal for investors with large balances. In year one, this amount would cost the equivalent of a 0.26% annual management fee, falling to a mere 0.16% per year over 10 years. Depending on your account type and other factors, you may be required to keep from 6% to 30% of your balance in cash.

Some of these ETFs are more specialized than the options on tap at many other robo-advisors, like real estate, commodity and gold funds. After choosing either a taxable brokerage account or a tax-advantaged retirement account, Schwab Intelligent Portfolios presents you with a recommended portfolio allocation. You can keep all of your investing portfolios under one roof, and get access to Schwab’s strong educational and support offerings. The book is celebrated for being one of the earliest manuals written by a legendary investor, specifically targeting retail investors. His insights have left an indelible mark on renowned investors such as Warren Buffett and Peter Lynch.

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Together with Security Analysis, the other Graham masterwork, The Intelligent Investor most likely can help boost the returns of any investors. Some famous investors even claim to re-read it every year. Because it focuses on timeless and essential advice, it is equally useful to experienced investors. It provides retail and beginner investors with the basics they need to succeed.

Where investors come to learn about mutual fund education and opportunities. By comparison, a Vanguard Balanced Index Fund (60/40 allocation) returned similar figures over the same period, with Schwab offering slightly less volatility due to its multi-asset class structure and cash buffer. Even with ETF expense ratios included, Schwab Intelligent Portfolios is still far cheaper than traditional advisors, who often charge 1% or more annually. This “cash drag” can reduce long-term returns, especially during bull markets.

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Investors can also achieve a margin of safety by diversifying their portfolios and purchasing stocks in companies with high dividend yields and low debt-to-equity (D/E) ratios. Graham also advocated for an investing approach that provides a margin of safety—or room for human error—for the investor. If the intrinsic value is more than the market value—in other words, the stock is undervalued in the market—the investor should buy and hold until a mean reversion occurs. Value investing is deriving the intrinsic value of a common stock independent of its market price. Graham, along with David Dodd, began teaching value investing as an investment approach at Columbia Business School in 1928. These and other concepts, including “margin of safety” and “period of financial distress,” helped to lay the groundwork for Graham’s later work in “The Intelligent Investor” and helped to pioneer some of his pivotal investing concepts.

• These accounts can bolster your retirement savings while simultaneously providing you with distinct tax advantages.
• The company offers a wide range of investments, low fees and four trading platforms.
• Nevertheless, it’s important to keep expense ratio fees in mind as they can eat away at your returns over time.
• If you’re still comparing platforms, check out our guide to the best robo-advisors to see how Schwab stacks up against others.
• Depending on your account type and other factors, you may be required to keep from 6% to 30% of your balance in cash.
• If the intrinsic value is more than the market value—in other words, the stock is undervalued in the market—the investor should buy and hold until a mean reversion occurs.

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As mentioned, Schwab Intelligent Portfolios uses ETFs to build client portfolios, and these ETFs carry expense ratios. This plan offers additional services such as personalized financial planning, tax-loss harvesting, and more. Additionally, Premium clients get access to enhanced tax-loss harvesting, portfolio analysis, and other advanced tools that can help them make more informed financial decisions. This plan includes everything that the standard service offers, but with added benefits such as one-on-one financial planning sessions with a certified financial planner (CFP). Charles Schwab Intelligent Portfolios builds portfolios using a mix of low-cost, index-tracking ETFs. This review will provide an in-depth look at Schwab Intelligent Portfolios, examining its features, benefits, fees, performance, and more.

What Type of Book Is “The Intelligent Investor”?

Schwab’s robo-advisor service rebalances portfolios periodically to maintain the desired asset allocation. Charles Schwab Intelligent Portfolios is a robo-advisory service that creates and manages a diversified portfolio of exchange-traded funds (ETFs) for investors. The service offers a hands-off approach to investing by utilizing algorithmic models that manage clients’ portfolios according to their risk tolerance and financial goals. Launched in 2015, Schwab Intelligent Portfolios is an automated investment service designed to manage your portfolio with minimal effort and zero advisory fees.

• This plan includes everything that the standard service offers, but with added benefits such as one-on-one financial planning sessions with a certified financial planner (CFP).
• The large cash allocation, even for Premium users paying for the service, is a common complaint regarding Intelligent Portfolios.
• Schwab provides tax-loss harvesting to customers with taxable accounts worth $50,000 or more.

Together with an investor’s focus on the business fundamentals, this should provide investors with more consistent and safer returns. The riskier the investment, the more margin of safety is needed. Graham’s fundamental thesis is that investors should buy a business below its “real” value to make money. Because Mr. Market’s moods might take a while to change, this can put a strain on investors’ minds.

Premium Service

While the minimum investment is higher than some of the competition, you’ll enjoy broad access to a range of account types if you opt for Schwab. We sometimes offer premium or additional placements on our website and in our marketing materials to our advertising partners. If you have any specific questions while considering which product or service you may buy, feel free to reach out to us anytime. It empowers everyday investors with the information they need to make great decisions with their money.

As a Schwab Intelligent Portfolio investor, you’ll receive 24/7 support from customer service professionals who are based in the U.S. You can get quite in-depth with your financial planning through the account options from Schwab. Discover how Schwab Intelligent Portfolios operate, how much you’ll pay (or potentially, won’t pay), and the extra perks that make this robo-advisor stand out.

Schwab Intelligent Portfolios vs Competitors (2025 Comparison)

Schwab Intelligent Portfolios is best suited for investors who are looking for a low-cost, hands-off investment strategy. Historically, Schwab’s portfolios have performed in line with market averages, thanks to their diversified, low-cost structure. While this fee is higher than the standard plan, it may be worthwhile for investors who want more guidance and advanced features.

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The mean reversion theory holds that over time, the market price and the intrinsic price will converge. Analyzing a company’s assets, earnings, and dividend payouts can help identify the intrinsic value of a stock, which can then be compared with its market price. An investor is neither right nor wrong if others share the same sentiments as them; only facts and analysis can make them right.

“The Intelligent Investor,” first published in 1949, is a widely acclaimed book on value investing. Rather, his goal is ownership in quality companies that are extremely capable of generating earnings; Buffett is not concerned that the stock market ever recognizes a company’s value. In general, Buffett follows the principles of value investing, which looks for securities whose prices are unjustifiably low based on their intrinsic worth. He later worked for Graham at his investment company, Graham-Newman Corp., until Graham retired. Graham would later write a book about how to interpret financial statements, from balance sheets and income and expense statements to financial ratios.

Users get access to the same 24/7 customer service that nabbed the Charles Schwab brokerage platform the title of best broker for customer service in our ranking of the best online brokers. By selling off investments whose values have fallen, this strategy aims to minimize the amount of tax you may owe on gains. Schwab provides tax-loss harvesting to customers with taxable accounts worth $50,000 or more.

NerdWallet has engaged Atomic Invest LLC (“Atomic”), an SEC-registered investment adviser, to bring you intelligent investor share advisor review the opportunity to open investment advisory accounts (Automated Investing Account and/or Treasury Account) with Atomic. As for Schwab Intelligent Portfolios Premium, the $30 per month fee is lower than similar offerings from other advisors. But for a free robo-advisor, those feel more like nitpicks than significant issues. In addition, interest earned through the cash allocation portion of a Schwab Intelligent Portfolios account is “swept” into an FDIC-insured account, providing coverage of up to $250,000.

Several users also noted that their portfolios underperformed compared to simple index-based strategies like the S&P 500. The platform is often described as easy to use and convenient for hands-off investors. Additionally, uninvested cash is swept into FDIC-insured deposit accounts at Schwab Bank, up to applicable limits. The Schwab service is best suited for individuals who prefer a passive strategy and don’t require frequent human interaction or customized investment advice. If you prefer traditional one-on-one financial advice, check out our Charles Schwab financial advisor review.