Security Analysis written by Benjamin Graham and David Dodd, published by McGraw-Hill, galvanized the concept of value investing. Irving Kahn who was one of Graham’s teaching assistants at Columbia University also made research contributions to Graham’s texts for Security Analysis. The first edition was published in 1934, shortly after the Wall Street crash and start of the Great Depression.
The sixth edition of the Security Analysis: Foreword by Warren Buffett, is one of the most significant books in the history of financial analysis. The book attempts to teach the investors a new approach to assess the business that lay behind security.
This book contains many examples based on actual events to show the tendency of markets to undervalue some securities that don’t seem to be favorable. It explains how this could help the savvy opportunists, if assessed rightly. This book basically shows how an investor who is professionally trained can utilize the financial analysis of the corporation to determine the intrinsic value of a company.
Security Analysis further explains how Graham’s margin-of-safety principle can be used to make profit. It shows the investors how stocks can be bought when the market price is way below its original value and then earn good returns. The book also discusses the genesis of corporate finance and financial analysis. Security Analysis: Sixth Edition, Foreword by Warren Buffett was published on 25th November, 2008 and is available in hardcover. It includes a short introduction to the book by Warren Buffet who benefited immensely from this book.
Selling more than one million copies through five editions, it has provided generations of investors with the timeless value investing philosophy and techniques of Benjamin Graham and David L. Dodd. It is the longest running investment text ever published.
About the Authors
Benjamin Graham was a British-born American investor, economist, and professor. Popularly known as the ‘Father of Value Investing’, his investment approach attracted a lot of followers some of whom emerged as top investors. Apart from Security Analysis, Graham has also authored ‘The Intelligent Investor‘ and ‘Storage and Stability’.
David LeFevre Dodd was a famous American author, educator, financial analyst, economist and professional investor. Apart from co-authoring ‘Security Analysis’, Dodd also wrote the book ‘Stock Watering’.
Graham agreed to teach with the stipulation that someone take notes. Dodd, then a young instructor at Columbia, volunteered.
The phrase “Graham and Dodd,” is often used interchangeably when referring to an approach to investing.
# “Great information and insight”
# “This book is about value investing. It explains how to value a security, but it is not for beginners.”
# “Good book. Comprehensive overview of stock and related articles. Bond’s are also covered. The book quality is good. Though I bought it for close to 800 (including postage) I will definitely recommend it to anyone.”
# “The quality of the book’s content need no emphasis since it Graham and Dodd’s work. The print and binding of the book is truly amazing. Very satisfied with the binding. Worth the cost. This company published more classics.”
# “This book is great. Concepts are good. Patience is needed to read this book and learn things from this.”
Hardcover: 816 pages
Book Dimensions: 40.1 x 14 x 59.9 cm
Publisher: McGraw Hill Education; 6 edition (1 July 2017)