The Bottom Line
If you are a serious investor, Security Analysis by Benjamin Graham should be in your library. Commit every word to memory.
Pros
- Thoroughly explains how to value stocks and bonds
- Gives guidelines for successful investing
- Foundation of value investing
Cons
- Assumes a basic background in finance
Description
- Benjamin Graham's Security Analysis has been called the "Bible" of investing.
- There have been five editions of Security Analysis, the 1934 edition being the first.
- Security Analysis was co-written by David Dodd, an associate and student of Benjamin Graham.
Guide Review - Security Analysis 1934 Edition by Benjamin Graham
In 1934, the U.S. was reeling from the stock market crash and great depression. The release of Security Analysis was a bold move at a time when common stocks were thought to be a vehicle for gambling. It argued that no investment instrument is bad in and of itself; one must look at the individual facts surrounding the investment.
In Security Analysis, Benjamin Graham teaches the reader to do just that by systematically walking them through the process of analyzing a company. Obviously, because it was written over seventy years ago, there are new regulatory and tax laws in place. This shouldn’t matter to the reader, however, because the basic ideas of valuation remain the same.
