Graham and Dodd's Security Analysis

by Sidney Cottle, Roger F. Murray, Frank E. Block

Since its publication, Security Analysis by Graham and Dodd has been the investment bible and has sold more than 750,000 copies. Now the fifth edition of this classic updates the application of the Graham and Dodd valuation approach for today's greatly changed investment environment. This edition brings the Graham and Dodd approach up to date with the changes that have occurred since the last edition was published--changes in investment practices and regulation, several new tax laws, the explosion of new accounting and financial reporting rules, persistent inflation in capital markets, new investment instruments, and more. Maintaining the high standards of prior editions, Security Analysis puts at your fingertips the authoritative guidance on analyzing securities that generations of users have come to rely on. Here in clear, easy-to-use explanations you'll find the tools of financial statement analysis--from the investor's viewpoint and with an investor's notion of income and capital maintenance--that have enabled value investors to keep the edge in a highly competitive market. The book provides the principles and techniques to measure asset values and cash flows so that you can sharpen your judgments of company earnings, refresh your insight into what individual companies are worth, and evaluate how much debt a leveraged company can service. You'll find practical guidance to make better investment decisions whether you're a security analyst, portfolio manager, broker/dealer, investment banker, credit officer, or a serious individual investor. Heavily illustrated with examples taken from real companies, Security Analysis , Fifth Edition, is an investment book like no other for investors who aspire to the highest investment accomplishments.

Genres: Finance, Business, Economics, Nonfiction

658 pages, Hardcover

First published December 31, 1980

Reviews

[Kamran · Rating 5 out of 5]

An excellent book on value investing that aims provide sound technical knowledge for interpreting and analyzing financing statements to value securities. I must caution that knowledge of business and financing accounting is a pre-requisite before reading this masterpiece.

[Jagdev · Rating 5 out of 5]

Considering the subject matter at hand, the authors have done a tremendous job making it accessible to the average person. Some prior knowledge of the principles and jargon of investment is required, but not so much that you cannot pick it up as you go along.

Time and time again the principles within have been proven correct and true, most critically when the professional consensus has been to consider them out of date. The book promises less than other titles on investment theory, and for this reason alone it is often held up as a symbol of an unrefined and primitive form of investment theory.

Personal experiences vary, but what cannot be refuted is that each edition that has been published has included new statistical data covering the interim period. Each time that data has shown Benjamin Graham's method of analysis applied to value investment to have been reliable. Indeed, even throughout periods of major economic booms and busts, the principles have been demonstrably correct.

The simple facts of the truth are a powerful advocate, and nothing more really needs to be said about this book.

[William Schram · Rating 4 out of 5]

Graham and Dodd's Security Analysis is an introduction to value investing written in the 1980s. It covers everything you need to look at in a company's balance sheet to determine whether you should invest in it.

The book focuses on prose, but eventually, it discusses some mathematics.

The only problem the book has is its age.

I enjoyed the book. Thanks for reading my review, and see you next time.

[Alejandro · Rating 3 out of 5]

Worth reading for those interested in value investing, but keep in mind it has been written such a long time ago, that many of the discussions related to aspects such as accounting or cash flows are not very relevant in today's environment.

That said, the ideas presented on being a disciplined investors and resisting the temptation of following the crowd at any cost are extremely useful.

[CAPTAINPIG · Rating 3 out of 5]

1st book I bought in the 21st century. Too dry for me -- haha -- guess for keeps sake

[Austin Kueckelhan]

Book opens mind to mental frameworks for investing you didnt realize you held contradictory views on. Wonderful book

[Caedmon Holland · Rating 4 out of 5]

Good book, I would recommend reading The Intelligent Investor first to understand the finance lingo and the investment philosophy.

[Charlie Lake · Rating 4 out of 5]

Excellent book. Writing style was in the style used almost a century ago which it makes it a challenging read for the novice investor. But the book is a keeper. It needs to be read and read in order to drive these priceless investing advice gems home. Start when you are young. Read "Value Investing Made Easy" by Janet Lowe at the same time which summarizes many of the concepts in a more simple fashion. The "Intelligent Investor" by Graham also deals with these concepts and is slightly easier tor read than "Securities Analysis".

[Kirill · Rating 3 out of 5]

очень сложно читать потому что написана сложным языком. Очень много устаревших данных. Крайне непрактичная книга - нет никаких расчетов стоимости (только в одной главе). Очень много качественных оценок бизнеса 80-ых годов двадцатого века.