MASTERY QUIZ

The Intelligent Investor

Test your knowledge with 45 questions across 3 challenge tiers

Based on the book The Intelligent Investor by Benjamin Graham

🥉 Fundamentals

🥈 Deep Dive

🥇 Expert

Value Investing

The strategy of buying securities trading below their intrinsic value providing a margin of safety

Example

Graham advocated buying stocks when market price was significantly below calculated intrinsic worth

Margin of Safety

The difference between intrinsic value and purchase price that protects against errors and market downturns

Example

Buying a stock worth 100 dollars for 70 dollars provides a 30 percent margin of safety

Mr. Market

Graham's allegory of the stock market as an emotional business partner who offers to buy or sell at different prices daily

Example

Mr. Market is sometimes euphoric offering high prices and sometimes depressed offering bargains

Intrinsic Value

The true underlying value of a security based on fundamentals independent of market price

Example

Intrinsic value is calculated from earnings assets dividends and growth prospects

Defensive Investor

A passive investor seeking safety and freedom from frequent decisions through diversification and quality

Example

Defensive investors hold diversified portfolios of established companies and rarely trade

Enterprising Investor

An active investor willing to devote time and effort to security selection for potentially higher returns

Example

Enterprising investors research individual companies seeking undervalued opportunities

Speculation

Making investment decisions based on market movements rather than fundamental value analysis

Example

Buying a stock because you expect others will pay more is speculation not investment

Investment

An operation which upon thorough analysis promises safety of principal and adequate return

Example

True investment requires analysis value-basis and margin of safety not just buying securities

Diversification

Spreading investments across multiple securities to reduce risk from any single position

Example

Graham recommended holding 10-30 stocks across different industries for adequate diversification

Dollar Cost Averaging

Investing fixed amounts at regular intervals regardless of price to reduce timing risk

Example

Monthly investment of fixed sums automatically buys more shares when prices are low

Growth Stock

A stock expected to increase earnings faster than average often trading at premium valuations

Example

Growth stocks carry risk that expected growth may not materialize or may already be priced in

Earnings Power

A company's demonstrated ability to generate profits which forms the basis for valuation

Example

Graham emphasized current earnings power over projected future growth in valuation

Fundamentals

TIER 1 • READER BADGE

10 Questions ~5 min 80% to pass

Start Quiz →

🔒

Deep Dive

TIER 2 • SCHOLAR BADGE

15 Questions ~10 min 80% to pass

🔒 Pass Fundamentals to Unlock

🔒

Expert

TIER 3 • MASTER BADGE

20 Questions ~15 min 85% to pass

🔒 Pass Deep Dive to Unlock

BOOK REVIEW