With 85 ratings
By: Benjamin Graham and David Dodd
Purchased At: $43.62 (19 used & new offers)
"Graham's ideas inspired the investment community for nearly a century."--Smart Money
"Graham's method of investing is as relevant today as it was when he first espoused it during the Roaring Twenties."--Investor's Business Daily
Benjamin Graham's revolutionary theories have influenced and inspired investors for nearly 70 years. First published in 1934, his Security Analysis is still considered to be the value investing bible for investors of every ilk. Yet, it is the second edition of that book, published in 1940 and long since out of print, that many experts--including Graham protégé Warren Buffet--consider to be the definitive edition. This facsimile reproduction of that seminal work makes available to investors, once again, the original thinking of "this century's (and perhaps history's) most important thinker on applied portfolio investment."
For those of you reading this who are new to investing, Benjamin Graham and David Dodd quite literally wrote the book on value investing, and this is it. I would point out though that it was written for the purpose of being a source of information and tools rather than a way of introducing and inspiring its readers to the philosophy of value investing. So if you are new to investing or to the concepts of value investing, I would really recommend reading Graham's "The Intelligent Investor" first; it's a comparatively easy to read introduction to the concepts covered in greater detail in this book.
While I have not read the original 1930's edition, I have heard that this version is more complete in that it irons out some of the kinks in the investment strategy that Graham developed following his near bankruptcy during the great depression.
A word on the relevance of this book in today's market: Much of the book centers about examples from preferred stocks of utilities and railroads, investment vehicles which are far less prevalent today than they were in the early 20th century. However, these are just examples, and the pitfalls and opportunities which arise in the stock market are as prevalent today as they were in the days this book was written. I am of the opinion that those who criticize this work on the basis that it is outdated, really did not understand what Graham was trying to do; to convey a new way of thinking about stocks, and to understand them based on the company that they represent. It doesn't matter whether you are purchasing a pre-depression era railroad preferred or the hybrid floating rate bond of a modern technology company, the examples exist to illustrate how to look past all that and to understand what the purchase of that security really means. If, after reading this book, you find yourself unable to transfer the examples to the modern world, then quite frankly you've read it wrong.
If, however, you are concerned about the relevance and are after more specific guidance on modern applications (as well as trimming of the "less" relevant sections), take a look at the 6th edition of this book, which contains detailed chapter summaries and introductions by modern money people.
Finally, the reason for the 4 stars: The digitization of this book is not fantastic, and given the price this is not really acceptable. I found several errors which I have reported (and will hopefully have been fixed by now), but my real gripe is with the tables and figures, which are simply scanned. This is usually fine, but many of the footnotes are so small as to be illegible, and the overall feel is somewhat like a sketchbook; with cutouts glued to the pages where the tables were in the real book. I had hoped that Amazon would instead have digitally transcribed the tables and inserted them, or at least given them a transparent background, rather than the sepia tone that can't be changed on the tables. If this is ever corrected I'll change my review to 5 stars and remove this paragraph.
I can't possibly express my gratitude for what those two did when they decided to put Graham's experience onto paper in the form of this book, and I think I will forever be grateful for their efforts. This book has taught me invaluable lessons not only in investing but also in prudence and the value of sobriety in the face of euphoria and gloom, lessons which apply to many other facets of life.
Only quibble is that it's a bit long and sometimes ponderous. If you haven't read "The Intelligent Investor" by Benjamin Graham, get that one first; but after you read that, you'll probably want to read this one.
The prescient thinking and insight displayed by Graham and Dodd in the first editions of "Security Analysis" reached new heights in the second edition. In words that could just as easily have been written today as fifty years ago, they detail techniques and strategies for attaining success as individual investors, as well as the responsibilities of corporate decision makers to build shareholder value and transparency for those investors.
The focus of the book, however, remains its timeless guidance and advice--that careful analysis of balance sheets is the primary road to investment success, with all other considerations little more than distractions.
"Security Analysis: The Classic 1940 Edition" marks the return of this long-out-of-print work to the investment canon. It will reacquaint you with the foundations of value investing--more relevant than ever in tumultuous twenty-first century markets--and allow you to own the second installment in what has come to be regarded as the most accessible and usable title in the history of investment publishing.
However, it's very helpful to have a background in finance and accounting to enjoy this book. I tried to read it as a college sophomore, but couldn't get through it. After 1.5 years of investment banking, and 1 year of investment analysis (constant reading of company filings), I gave this book another try. I completed it and learned a lot. It's very comprehensive in its discussion of corporate finance, investment securities, and investment philosophy.
I created my own tumblr detailing the insightful quotes:[...]
It's a book that I will re-read again in the near future.
Long-term relevance and value of corporations.
Better than later 6th edition.
Les auteurs exposent leurs conseils en matière d'investissements, leur analyse de l'histoire des marchés boursiers (jusqu'à 1940 bien sûr), et expliquent la manière d'analyser les comptes financiers des entreprises pour être un investisseur intelligent et éviter au mieux les comportements spéculatifs.
Bien qu'écrit il y a plus de 70 ans, leur philosophie d'investissement est tout à fait applicable aujourd'hui (le détail des techniques comptables et de certains véhicules d'investissements de l'époque le sont sans doute moins), et le regard critique qu'ils portent sur l'évolution des mentalités ayant précédée la crise de 1929 est extrêmement intéressant. On pourrait croire que certains passages ont été écrits au sujet des crises boursières du début du XXIè siècle : spéculation croissante, croyance généralisée que les arbres peuvent monter jusqu'au ciel et que "cette fois-ci ça sera différent"...
Je n'ai mis "que" 4 étoiles car j'ai réservé les 5 étoiles à "The intelligent investor", ouvrage fondamental que toute personne pouvant se permettre d'épargner sur le moyen/long terme devrait avoir lu.