Security Analysis: Principles and Technique

Security Analysis: Principles and Technique

by Benjamin Graham

By 1951, seventeen years past its original publication and more than a decade beyond its revised and acclaimed 1940 second edition, authors Benjamin Graham and David Dodd had seen business and investment markets travel from the depths of Depression to the heights of recovery, and had observed investor behavior during both the calm of peacetime and the chaos of World War II.The prescient thinking and insight displayed by Graham and Dodd in the first two editions of Security Analysis reached new heights in the third edition.

The authors had seen and survived the Great Depression as well as the political and financial instabilities of World War II and were now better able to outline a program for sensible and profitable investing in the latter half of the century.Security Analysis: The Classic 1951 Edition marks the return of this long-out-of-print work to the investment canon.

It will reacquaint you with the foundations of value investing--more relevant than ever in tumultuous twenty-first century markets--and allow you to own the third installment in what has come to be regarded as the most accessible and usable title in the history of investment publishing.

  • Language: English
  • Category: Economics
  • Rating: 4.34
  • Pages: 770
  • Publish Date: December 31st 2004 by McGraw-Hill Education
  • Isbn10: 0071448209
  • Isbn13: 9780071448208

What People Think about "Security Analysis: Principles and Technique"

The first few times I read Graham I thought it was very dry but I've acclimated myself to him and now enjoy his writing. Graham addresses the qualitative in other writings, but the reader will probably pick up he is uncomfortable and/or apathetic with it and limits it as much as possible. Graham literally invented most of the methods and ideas in the book.

more often than not the math and terms used in the financial industry are employed to turn relatively simple concepts into seemingly complicated and scientific ideas. Overall, if you're like me and want to learn from the ground up, and are more interested in theory, this is the very foundation of contemporary value investment theories

They also offer valuable advice on issues as diverse as market timing, intrinsic value, market behavior, analyzing a business, using quantitative and qualitative methods to analyze securities, how investment differs from speculation, key issues for fixed investments vs common stocks, the margin-of-safety principle, the importance of the balance sheet as well as the income statement in analyzing companies, the importance of comparing price to value, and many other concepts that would benefit investors of today.

--- Graham is an interesting author with original ideas and not afraid of challenging other's opinion and bluntly mention them in his book. I feel hesitated to read big part about bonds to this book; but the concept of Value Investing itself lies on a thorough fundamental analysis of the company. Future forecasting and timing on buying are not an action of investment - Graham argued in both Intelligent Investor and Security Analysis. I had about ten thousand bucks when Professor Graham gave his advice, Buffett told the Wall Street Journal.

A lot of really wise advice of the general kind (see quotes below). Unfortunately it's embedded in a very thick book and I wouldn't recommend anyone reading the whole book to pick out those advice unless they are really interested in investments, and in particular value investments and if they are, I hope they are already familiar with much of what Graham and Dodd write here. Some quotes from the book The most general advice of all: "The future is often no respecter of statistical data." About trust in the management (Norwegian Vardia is an ongoing example of this): "When an enterprise pursues questionable accounting policies, all its securities must be shunned by the investor, no matter how safe or attractive some of them may appear." About making those really great deals: "Obviously it requires strength of character in order to think and to act in opposite fashion from the crowd and also patience to wait for opportunities that may be spaced years apart." About people trying to convince by complicating things.

Instead of correcting this shortcoming, a vague essay is offered which mostly rants about the difficulties - giving dated examples, in some cases from the 1980s - so much for updating Graham to today's markets. More alarmingly, one of the contributors notes that a certain practice is "an unacceptable risk for those of us who invest our own money alongside our client." The reader cannot fail to compare this statement with one made by Buffett in his commentary to Graham's Intelligent Investor, where he notes that a manager cannot afford to take risks precisely because it's not his money that is at stake, but his client's.

As someone who only invests in private companies and owns no public stocks, I was hoping for a bit more data that would be usable.

Disciples of value investing include Jean-Marie Eveillard, Warren Buffett, William J.