Are You an Intelligent Investor?

Graham believed someone could be an intelligent investor in two ways:

ACTIVE OR ENTERPRISING INVESTORS -  These types of investors have a lot of time to spend on building and managing their portfolios and also have a high risk tolerance.  They must continually research, select, and monitor a dynamic mix of stocks, bonds, or mutual funds.

PASSIVE OR DEFENSIVE INVESTORS - These types of investors don't have a lot of time to spend on a portfolio or can't tolerate much risk.  They must create a permanent portfolio that runs on autopilot and requires no further effort.  This type of passive portfolio won't be very exciting, but it will get you steady returns over your lifetime.