Security Analysis: Sixth Edition: Foreword by Warren Buffett
Posted by jack_miller | Published a year ago
With 380 ratings
By: Benjamin Graham, David Dodd, et al.
Purchased At: $82.00
"A road map for investing that I have now been following for 57 years." (From the Foreword by Warren E. Buffett)
First published in 1934, Security Analysis is one of the most influential financial books ever written. 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.
As relevant today as when they first appeared nearly 75 years ago, the teachings of Benjamin Graham, “the father of value investing”, have withstood the test of time across a wide diversity of market conditions, countries, and asset classes.
This new sixth edition, based on the classic 1940 version, is enhanced with commentary from some of today’s leading Wall Street money managers. These masters of value investing explain why the principles and techniques of Graham and Dodd are still highly relevant even in today’s vastly different markets. The contributor list includes:
- Seth A. Klarman, president of The Baupost Group, LLC and author of Margin of Safety
- James Grant, founder of Grant's Interest Rate Observer, general partner of Nippon Partners
- Jeffrey M. Laderman, twenty-five year veteran of BusinessWeek
- Roger Lowenstein, author of Buffett: The Making of an American Capitalist and When America Aged and Outside Director, Sequoia Fund
- Howard S. Marks, CFA, Chairman and Co-Founder, Oaktree Capital Management LP
- J. Ezra Merkin, Managing Partner, Gabriel Capital Group
- Bruce Berkowitz, Founder, Fairholme Capital Management
- Glenn H. Greenberg, Co-Founder and Managing Director, Chieftain Capital Management
- Bruce Greenwald, Robert Heilbrunn Professor of Finance and Asset Management, Columbia Business School
- David Abrams, Managing Member, Abrams Capital
Featuring a foreword by Warren E. Buffett (in which he reveals that he has read the 1940 masterwork “at least four times”), this new edition of Security Analysis will reacquaint you with the foundations of value investing - more relevant than ever in the tumultuous 21st century markets.
PLEASE NOTE: When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.
DO NOT BUY THIS EDITION- GO GET THE 2ND EDITION INSTEAD (either the kindle or physical version)!! Both the physical copy and kindle version of the 6th edition exclude 30+% of the critical information on how to go about actually evaluating certain investments. I don't know why McGraw Hill excluded such important chapters from this edition, only to allow you to access the missing chapters from a CD Rom (which is not compatible with so many computers nowadays). I spent over an hour trying to get the missing chapters. Go save yourself the trouble, and just buy the 2nd edition.
Benjamin Graham and David L. Dodd have written an excellent book. It's easy to follow and has an incredible amount of insight. Don't lose out on it by buying the incomplete 6th edition. The commentary and forwards provided are great in the 6th edition, but they in no way make up for the shockingly VAST amount of MISSING content.
**Shoutout to theamazing Amazon Kindle rep who helped me figure this out and take care of the issue! McGraw Hill was of ZERO help**
Benjamin Graham and David L. Dodd have written an excellent book. It's easy to follow and has an incredible amount of insight. Don't lose out on it by buying the incomplete 6th edition. The commentary and forwards provided are great in the 6th edition, but they in no way make up for the shockingly VAST amount of MISSING content.
**Shoutout to theamazing Amazon Kindle rep who helped me figure this out and take care of the issue! McGraw Hill was of ZERO help**
Both the original content and the additional content in his edition are great. However, the additional content has been added at the expense of eleven chapters and the appendix, which you must use an included CD to access. The CD however does not even contain the chapters themselves, but a link to a webpage from which to download them. I purchase physical copies of nonfiction books because the formatting is generally superior to e-book versions, making them easier to read. This has been particularly counter-productive in this instance, as not only is it annoying to have to switch, but the missing chapters seem to have been removed almost at random. Also, the provided digital chapters are .pdf files instead of e-book files, so reading them is actually worse than reading a normal e-book.
The ridiculous thing is that I would have gladly paid extra for the full thing in two print volumes.
The ridiculous thing is that I would have gladly paid extra for the full thing in two print volumes.
"Price is what you pay, value is what you get"
In the case of the 6th edition of Security Analysis, the value is a poor one indeed. The book has been "updated" to include the commentary of some of the more well-known value investors of our age, which by itself is great. However, what the good folks over at McGraw Hill downplay is the fact they decided to remove a sizable portion of the actual text from the book, and shift it to a CD-Rom. Out of the 52 chapters that comprise this masterful work, 11 (~21% of the original text) have been omitted from the actual book, along with the appendix which houses a great deal of statistical data that adds vital context to Graham and Dodd's insightful analysis. The CD-Rom adds another layer of consumer woe to this laughable excuse of an edition. Inserting the CD in to your computer you are prompted to provide a host of information (Name, Email, etc.) to access the text that you own. On principle, I refuse to jump through these hoops just because some unscrupulous publisher thinks he can get clever on how to collect my personal information.
I guess it’s fitting that in a book that teaches you how to search for value your first test is to actually choose the version that provides the most value for your dollar. I can tell you this now; the 6th edition is not the version that does the trick. Please learn from my mistake and choose another version that does not short change you on content. As a starting point, the 2nd edition, published in 1940, is the version that Warren Buffett used when he was getting his start in the investing world.
This book is a timeless classic on investing and you will be enriched mentally and possibly even financially if you are willing to read thoughtfully and diligently. However, your journey through securities analysis will be hobbled if you only receive 4/5 of the content you purchased. To that end I would recommend a version of Security Analysis other than the 6th edition.
In the case of the 6th edition of Security Analysis, the value is a poor one indeed. The book has been "updated" to include the commentary of some of the more well-known value investors of our age, which by itself is great. However, what the good folks over at McGraw Hill downplay is the fact they decided to remove a sizable portion of the actual text from the book, and shift it to a CD-Rom. Out of the 52 chapters that comprise this masterful work, 11 (~21% of the original text) have been omitted from the actual book, along with the appendix which houses a great deal of statistical data that adds vital context to Graham and Dodd's insightful analysis. The CD-Rom adds another layer of consumer woe to this laughable excuse of an edition. Inserting the CD in to your computer you are prompted to provide a host of information (Name, Email, etc.) to access the text that you own. On principle, I refuse to jump through these hoops just because some unscrupulous publisher thinks he can get clever on how to collect my personal information.
I guess it’s fitting that in a book that teaches you how to search for value your first test is to actually choose the version that provides the most value for your dollar. I can tell you this now; the 6th edition is not the version that does the trick. Please learn from my mistake and choose another version that does not short change you on content. As a starting point, the 2nd edition, published in 1940, is the version that Warren Buffett used when he was getting his start in the investing world.
This book is a timeless classic on investing and you will be enriched mentally and possibly even financially if you are willing to read thoughtfully and diligently. However, your journey through securities analysis will be hobbled if you only receive 4/5 of the content you purchased. To that end I would recommend a version of Security Analysis other than the 6th edition.
I am very disappointed with this edition. The reason I bought this book is because I wanted to have it as a good reference book. To my horror, they took out 11 chapters from the original book and put them in a CD, and needs internet connection to access these chapters. These chapters are the most important ones in the original book. And they inserted intros to each chapter written by dont know who.
If you want to buy this as an item in your permanent collection, forget about it. Dont waste your money.
If you want to buy this as an item in your permanent collection, forget about it. Dont waste your money.
Unfortunately this product did not come with the CD nor did the pages go in order. The pages were misleading which made the flow of the content even more challenging to follow (started with Part IV vs Part I). I got this as a Xmas present for my partner and he was disappointed to put it lightly. I will be looking into how I can get my money back on this item and how I can return it.
Even though I consider myself as a busy reader of investment books and even though I have decades of experience in this area I learned a lot from this book. Granted it rested months on my table untouched because of its huge size but after started reading it became more and more interesting. My enthusiasm grew as I passed beyond fixed income securities which is not so relevant to me and went into common shares and balance sheet analysis.. But in the final part as Graham displays his anger against dividend-non-payers, cash-horders and management-board in general acting against common shareholders' interests Graham is as relevant today as it was in 1940. A marvelous extra is present-day investment-stars writing an introduction to each chapter. Some of them - Bruce Berkowitz, Glenn Greenberg, and Bruce Greenwald to mention my favorites - are just so intelligent and relevant in their writing that they add considerably to this otherwise seemingly eternally relevant book.
I have the same confession as Glenn Greenberg's (the one who wrote the intro to Part V of this book): I never read Security Analysis back in school, although I did read The Intelligent Investor. Many years into my career in investment research, I finally got around to writing about how I regret not picking up the book earlier. I would consider this a must-read, both as a textbook and a practical guide, for serious securities analysis professionals.
My experience with reading this book has been wonderful. Not only did I pick up various specific lessons that would be valuable for my career in the stock market (particularly on behavioral biases, such as the market's tendency to value management quality twice), I also came to appreciate the various aspects about Ben Graham as a person:
1. VISION
The book helps you understand why Ben Graham is considered a 'man of ideas', whose investment philosophies transcend time. Decades after the various editions of this book were published, such ideas as 'speculation focuses primarily on, and attempts to profit from, the unknown future' as well as the classic 'margin of safety' would have served to prevent the dotcom or the subprime mortgage crashes. Moreover, observations such as that the P/E ratio was arbitrarily applied ('sometimes to the past, sometimes to the present, sometimes to the near future') still resonate with current practices in many markets.
2. LOGIC
Ben Graham was mathematically inclined. After all, he did elect to major in math at Columbia. Reflecting this, his writing consisted of many instructive guidelines that are both illuminating and elegantly succinct, like what you would expect of a mathematical equality. This makes it so easy for readers to quote his wisdom. Consider this sentence: 'It may be said, with some approximation to the truth, that investment is grounded on the past whereas speculation looks primarily to the future.' (although this is not a complete statement).
3. CREATIVITY
Ben Graham's intellectual capacity is by no means confined to quantitative analysis. A reflection of his being offered post-graduation employment in English, math and philosophy, Ben Graham eventually went on to co-write a Broadway play, develop a patented Morse-code-based system, and translate a Spanish novel. In his writing, you would find such flair of his creativity as this: 'An indefinite and approximate measure of the intrinsic value may be sufficient. To use a homely simile, it is quite possible to decide by inspection that a woman is old enough to vote without knowing her age.'
4. GENEROSITY
Warren Buffett was impressed by Ben when he used his own stock picks as examples in his class at Columbia, thereby revealing his trade secrets, perhaps to his financial detriment. This tendency to be so generous is reflected in the book: the 'Dean of Wall Street' was so deeply concerned with the well-being of the laymen investor in the stock market that he lashed out on Wall Street as an institution, which he himself was part of. Warren Buffett was lucky to be at the receiving end of Ben's generosity.
Note that this is still essentially a book about the technicality and psychology involved in the job of a security analyst. To obtain a more detailed picture of Ben Graham as a person, I would recommend his own Memoirs book, or The Einstein of Money by Joe Carlen.
My experience with reading this book has been wonderful. Not only did I pick up various specific lessons that would be valuable for my career in the stock market (particularly on behavioral biases, such as the market's tendency to value management quality twice), I also came to appreciate the various aspects about Ben Graham as a person:
1. VISION
The book helps you understand why Ben Graham is considered a 'man of ideas', whose investment philosophies transcend time. Decades after the various editions of this book were published, such ideas as 'speculation focuses primarily on, and attempts to profit from, the unknown future' as well as the classic 'margin of safety' would have served to prevent the dotcom or the subprime mortgage crashes. Moreover, observations such as that the P/E ratio was arbitrarily applied ('sometimes to the past, sometimes to the present, sometimes to the near future') still resonate with current practices in many markets.
2. LOGIC
Ben Graham was mathematically inclined. After all, he did elect to major in math at Columbia. Reflecting this, his writing consisted of many instructive guidelines that are both illuminating and elegantly succinct, like what you would expect of a mathematical equality. This makes it so easy for readers to quote his wisdom. Consider this sentence: 'It may be said, with some approximation to the truth, that investment is grounded on the past whereas speculation looks primarily to the future.' (although this is not a complete statement).
3. CREATIVITY
Ben Graham's intellectual capacity is by no means confined to quantitative analysis. A reflection of his being offered post-graduation employment in English, math and philosophy, Ben Graham eventually went on to co-write a Broadway play, develop a patented Morse-code-based system, and translate a Spanish novel. In his writing, you would find such flair of his creativity as this: 'An indefinite and approximate measure of the intrinsic value may be sufficient. To use a homely simile, it is quite possible to decide by inspection that a woman is old enough to vote without knowing her age.'
4. GENEROSITY
Warren Buffett was impressed by Ben when he used his own stock picks as examples in his class at Columbia, thereby revealing his trade secrets, perhaps to his financial detriment. This tendency to be so generous is reflected in the book: the 'Dean of Wall Street' was so deeply concerned with the well-being of the laymen investor in the stock market that he lashed out on Wall Street as an institution, which he himself was part of. Warren Buffett was lucky to be at the receiving end of Ben's generosity.
Note that this is still essentially a book about the technicality and psychology involved in the job of a security analyst. To obtain a more detailed picture of Ben Graham as a person, I would recommend his own Memoirs book, or The Einstein of Money by Joe Carlen.
Still working my way through it but definitely changes your view on investment. Wish it was available on Audible
A must read before putting your money in anything.
great book
My husband wanted this and he never reads book but he has been glued to this as finance is his passion! Great delivery - it is a heavy book so beware!
I have to admit it is very boring but it leaves you with priceless knowledge. this is a definite read if you are considering being a successful investor.
Great edition but not the best one.
The classic of value investment. Provided new perspectives to think
One of the most relevant texts about finance and economics. Great for understanding value investing.
ok
Classic
Probably the best book on investing I have ever read
Não há duvidas que este livro é a muito o melhor livro sobre investimentos escrito por Graham, no entanto varias vezes são mencionados exemplos de 1934 onde não é exposto no livro desta sexta edição. ( Talvez para ser mais objetivo )
Comprem na AMAZON.COM a edição de 1934, uma vez que infelizmente aqui não há.
Sobre o livro : Leitura cansativa, porem vale mais do que a pena todo tempo voltado a investimentos e ao mundo financeiro. ( Obviamente caso você deseje uma independência ou até mesmo ajudar alguém e colocar a econômica a girar algumas vezes a mais )
Recomendo tanto a pessoas Físicas e Jurídicas.
Comprem na AMAZON.COM a edição de 1934, uma vez que infelizmente aqui não há.
Sobre o livro : Leitura cansativa, porem vale mais do que a pena todo tempo voltado a investimentos e ao mundo financeiro. ( Obviamente caso você deseje uma independência ou até mesmo ajudar alguém e colocar a econômica a girar algumas vezes a mais )
Recomendo tanto a pessoas Físicas e Jurídicas.
The bible
Great book!!!