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Security Analysis: Principles and Technique
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Security Analysis: Principles and Technique

4.31  ·  Rating details ·  4,917 Ratings  ·  88 Reviews
With nearly a million copies sold, Security Analysis has been continuously in print for more than sixty years. No investment book in history had either the immediate impact, or the long-term relevance and value, of its first edition in 1934. By 1951, seventeen years past its original publication and more than a decade beyond its revised and acclaimed 1940 second edition, a ...more
Hardcover, 770 pages
Published December 31st 2004 by McGraw-Hill Companies (first published 1962)
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Phillip
Jan 02, 2011 rated it it was amazing  ·  review of another edition
The 6th edition (which is the 75th anniversary of the 1st edition) has an absolutely wonderful and very heartfelt introduction by Buffett. This is actually a reprint of the 2nd edition but annotated by revered investors/academics, which I enjoyed. I have to warn this is basically a textbook and will come across as very dry. 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 is always very careful never to inject any fla ...more
Hamoon
Aug 24, 2014 rated it it was amazing
I'm no investor, but I enjoy keeping up with the markets the same way some baseball fans like digging into stats and nerding out on numbers. And that's why I decided to pick up this book and start learning more about value investing from a classic source.

Holy crap, I couldn't put it down and was surprised at just how simple it was. Now I do have training and experience as an accountant, so I wasn't worried about jargon or complicated math... more often than not the math and terms used in the fi
...more
Brian
Jan 28, 2009 rated it it was amazing
Reads very much like a textbook, but a must read for anybody considering stepping outside the world of mutual funds and actually investing in individual companies by using a value based approach. This book will provide the basic tools on how to evaluate the intrinsic value of a company, which is the first step in determining whether a security is a worthy investment. Certainly not an easy read, but well worth the time and effort.
Daniel Bratell
Without a doubt Graham and Dodd were wise men and they would still be wise men. That makes this book interesting regardless of age, but it has lost some of its significance. Not because they are wrong but because the things they are pointing out is of much less relevance in a world where fixed income securities are not mainstay investments, and where fixed assets are less important to a company's wellbeing than it used to be.

So what is left? A lot of really wise advice of the general kind (see q
...more
Anna Silalahi
May 12, 2015 rated it really liked it  ·  review of another edition
Shelves: economy
A book that really touches the issue in detail, but it is still carrying old facts of 1920s-1940s. Hence its broad mention upon railroad issues, public utility is too stretched that I suspect would benefit little to the analysis of popular industries nowadays.

In my opinion the recent edition of "Intelligent Investor" does better in updating and put some footnotes to adjust the statements with the now condition. In this book, even one of the co-author added to this edition humbly admitted that h
...more
Kara Lane
Aug 20, 2014 rated it it was amazing
I had always intended to read Security Analysis, but due to the size of the book (over 700 pages), I did not get around to reading it until around 2008. It was well worth the read. True, some of the examples are dated, like the emphasis on railroad securities and some old accounting rules, but the underlying principles still apply today.

The book emphasizes concepts, methods, standards, principles and logical reasoning, so it works in the current environment, just as it did when Graham and Dodd w
...more
Brad Gillespie
Feb 17, 2015 rated it it was amazing  ·  review of another edition
Extremely hard to read, but well worth it.
Bill
Jul 07, 2010 rated it it was amazing  ·  review of another edition
I feel like this book should be required reading before anyone is allowed to invest in the stock market
Alvin Lim
Sep 05, 2012 rated it it was amazing
Shelves: investing-books
With nearly a million copies sold, "Security Analysis" has been continuously in print for more than sixty years. No investment book in history had either the immediate impact, or the long-term relevance and value, of its first edition in 1934. 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 ...more
Jaroslav Tuček
Apr 10, 2016 rated it really liked it
The 6th edition is basically the 1940 2nd edition with a number of chapters, plus the appendix, removed to make room for contemporary commentary. The chapters are available as a separate download, nevertheless their omission is unfortunate as many of them are very informative and access to the separate material inconvenient. Certainly at least for the Kindle version, where size is not a concern, the omission is inexcusable -- and doubly so if you examine what it is that they have been left for.

T
...more
Joe Crane
Apr 30, 2016 rated it really liked it
I read this book (and will be reading The Intelligent Investor) as they are the books that shaped Warren Buffett's career. This tome is thick and written in the 1920-30s, so it is a bit difficult to read; however, a careful reading will help an entrepreneur better understand how people can lie to you with financial statements. It was a seminal read for me and an important reading experience.

As someone who only invests in private companies and owns no public stocks, I was hoping for a bit more da
...more
Steve Bradshaw
Oct 18, 2010 rated it liked it
Shelves: investment
Not a waste of time, but much more dated than the Intelligent Investors. I thought much of the good work done by the Intelligent Investor was weakened by the sanctioning of speculation.

Also overly prescriptive and narrowly framed based on the valuation levels of the day. It's a little like reading the bible - some parts you can take literally (like say the crucifixion), others you can only take figuratively (like say the story of genesis or noah's ark) and others you must throw out entirely (li
...more
Kari Olfert
Oct 28, 2015 rated it it was amazing  ·  review of another edition
Security Analysis is not for the amateur or newbie investor wanna be. That being said, I didn't understand approximately 63% of it but the parts I did understand seem to me to be investing wisdom at its finest. If you are a seasoned investor, you will want to read this book and refine your skills. I'll come back to this one.
M.R. Raghu
Feb 03, 2016 rated it it was amazing  ·  review of another edition
Absolutely fantastic stuff especially by contributing authors like Warren Buffet, Seth Klarman, etc If you have spent some time in the investing arena and feel out of touch with concepts and thoughts, here we go...
Denis Lipov
Aug 22, 2012 rated it it was amazing  ·  review of another edition
Great book for those who are interested in long-term investments.
Certain understanding of financial reporting is required.
George Jankovic
May 07, 2016 rated it it was amazing
The bible of securities investing i.e. studying financial statements and investing in stocks. Written in the 1930s. Still unsurpassed.
Nizami
Aug 16, 2017 rated it really liked it
certain issues may not be relevant to today's finance but there are lots of things you can learn reading the book. there is no book that goes as deep as this book teaching you about value investing except Intelligent Investor. If you are thinking about value investing or overall about investing, then you should read the book
Milan
Aug 15, 2017 rated it it was amazing  ·  review of another edition
Shelves: market, non-fiction
This is a timeless classic. The principles contained in this book have stood the test of time. If you are a serious investor, you have to read this. There cannot be any greater learning.
Brian Zheng
Oct 16, 2011 rated it it was amazing  ·  review of another edition
About the edition:
I read the most recent 6th edition which is essentially an abridged 2nd edition plus some industry gurus' comments on each part and the relevance to today's investment. People also recommend replacing the first part of the 2nd edition with 3rd edition which is more detailed and comprehensive.

I think the 2nd edition flows better than the 3rd. It started with evaluation of company for bond investment and followed by the idea that stock evaluation should be built on the bond eva
...more
William
Mar 28, 2008 rated it really liked it  ·  review of another edition
Oftentimes referred to as the best of the many editions, I wanted to read this version because it was released 10 years after the start of the Great Depression. The 'links' between investing after the 1920s offer some insights into a similar period as investing after the massive technology bubble of the 1990s.

Of course, we did not experience a global depression after the 1990s (due to Greenspan and the Greatest Global Boom of all time), but there are some common threads. In addition, Benjamin G
...more
Sean
Dec 02, 2013 rated it liked it  ·  review of another edition
The bible of value investing, Security Analysis instructs readers on how to invest -- rather than speculate -- in fixed income and equity securities. The authors appropriately highlight the importance of identifying and investing in good businesses selling at attractive prices relative to their intrinsic valuation. Much of the text, however, gets caught up in lengthy examples that weigh down this tome. Overall, this book reads well although the Intelligent Investor -- also written by Graham and ...more
Abdulrahman
Nov 17, 2013 rated it liked it
Read the classic version but found that the thoughts and standards of the time are far outdated from today's. The classic was written at a time when ticker tapes were in place, not when hundreds of billions of institutional funds move in and out of a country or industry equity sector within a week or 2. The principles are still true today as they were when they were first written, but context is what limits me from rating it a full 5!
Mike
Nov 10, 2008 is currently reading it  ·  review of another edition
A clear, oh-so-thorough review of a field in which I have little to no knowledge or expertise. If you have the patience to make it through, it represents a worldview that I find very interesting--you can follow the paper trail to very what has happened, to understand a group of people's decision making in the present, and to make educated guesses as to what could happen in the future. Fascinating.
Iliya Polihronov
Jul 24, 2015 rated it it was amazing
This book has more useful, practical and well reasoned information per page than anything else I've read about investing. It is however a heavy book, both figuratively and literally. It's doubtful whether you can appreciate all of it without already having some meaningful experience. Probably worth reading multiple times over ones investment career.
Monika
Czytałam znacznie dłużej, niż Regulamin tłoczni win Irvinga, i to pokazuje mój stosunek do tej książki. Trochę za dużo tu polityki USA z czasów wojny w Wietnamie, trochę za dużo tajemnic na siłę rozwiązywanych w ostatnim momencie i te dłużyzny mnie znudziły. Ale ostatecznie przeczytałam, bo język jednak Irving ma piękny i gładko prowadzi opowieść.
Kirill
Feb 12, 2015 rated it did not like it
Очень странно написанная книга. Вроде бы для профессионалов, но все разжевано очень сильно. Очень много специфики рынка США 70ых и 80ых годов, книга совсем не обновлялась с того времени.
Прочитал начало, некоторые полезные вещи узнал, дальше только пролистал.
Tyson Strauser
Feb 15, 2014 rated it really liked it
While this may the most commonly cited first book on most value investors shelves I will say that after getting about half way through you'll get the gist. Margin of safety through a disciplined valuation framework is necessary to sustainable returns
Mohomed Hisham
It is no doubt a classic, written so simply and touches on industry analysis which most books on investments miss out. Besides it deals with several aspects of getting to the roots of making a good stock selection.
Andrew Endicott
Feb 07, 2009 rated it it was amazing  ·  review of another edition
I'm probably the only person I know that could enjoy this book, but nonetheless, I found it very entertaining, despite its length. Don't read this unless you are very interested in the capital markets, though. It would be very boring.
Drew Johnson
Sep 21, 2009 rated it liked it
Text book like covering a breadth of topics without much focus on any one thing. Good over view but not fun nor deep enough to fully engage
Douglass Gaking
David Abrams summed up Security Analysis the best when he called it "the value investors' equivalent to Deuteronomy" in his introduction to Part VII of the 6th edition. It is an extremely thorough explanation of how to evaluate stocks and bonds, primarily focusing on a company's income statement and balance sheet. It is not an ideal starting point for young investors–I have read several finance books before this one, and parts of it were still over my head–but it is essential reading for any ser ...more
Tom Wallace
Mar 31, 2009 rated it it was amazing  ·  review of another edition
The examples tend to be from the 1930's. Just surviving this period in the securities business was a major accomplishment. Simple mean reversion didn't work very well -- anyone who tried it was already gone. Meanwhile the examples are excellent.
Especially the selections on 1920's mortgage backed securities -- yea they had them.
Aaron Rinehart
Great knowledge from the Master Benjamin Graham himself but a very hard book to get through. I would read War and Peace twice again before attempting to battle through it again. But don't get me wrong he is the founder of value investing and Warren Buffet's Teacher!
Lewis Loofis
Feb 14, 2016 rated it really liked it
This book showed the brilliance of Benjamin Graham, but you will need some knowledge in accounting before reading this. Must read for value investors wanna be.
David
Dec 29, 2014 rated it it was amazing  ·  review of another edition
Shelves: non-fiction, business
"There are no dependable ways of making money easily and quickly either in Wall Street or anywhere else."

...that doesn't mean it's impossible!
John McDonald
Mar 18, 2015 rated it it was amazing
The first book to read to understand stock market and stock trends. The chart analysis is time-tested and is good for commodities and other futures.
Rúben
Apr 06, 2015 rated it really liked it  ·  review of another edition
This edition keeps the spirit of Graham and Dodd's seminar work. I felt however that the new chapters don't add as much value as expected.
Rakesh
Dec 20, 2014 rated it it was amazing
Shelves: investing
A masterpiece on investing. Incomparable. Benjamin Graham is the God of investing. Any other comparison will not do justice to the master.
Malcolm
Feb 27, 2016 rated it it was amazing  ·  review of another edition
Shelves: stockmarket
Essential library reference.
Worth dusting off from time to time, to reinforce time tested stock market lessons.
Al Friedman
Dec 05, 2015 rated it it was amazing
An essential for anyone interested in a career in finance. Graham and Dodd give a thorough overview of all the basics.
Alifah Davida
Jan 28, 2015 rated it it was amazing
Shelves: read-business
amazing insight to the investment world...
old book but still hold true some values and principles
Kazi Ahsan
Aug 29, 2015 rated it it was amazing
it is still the bible of investing!!
Prashant
Apr 10, 2015 rated it it was amazing  ·  review of another edition
nothing can beat this!!
Kristina Ickes
Jan 14, 2015 rated it really liked it
The tome....
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Benjamin Graham (May 8, 1894 – September 21, 1976) was an American economist and professional investor. Graham is considered the first proponent of value investing, an investment approach he began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd through various editions of their famous book Security Analysis. Disciples of value investing include Jean-Marie Evei ...more
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“In other words, the market is not a weighing machine, on which the value of each issue is recorded by an exact and impersonal mechanism, in accordance with its specific qualities. Rather should we say that the market is a voting machine, whereon countless individuals register choices which are the product partly of reason and partly of emotion.” 2 likes
“... Bond selection is primarily a negative art. It is a process of exclusion and rejection, rather than of search and acceptance.” 1 likes
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