Security Analysis (6th Edition)

Benjamin Graham , benjamin Graham /David L Dodd

Physical

In Circulation

Security Analysis: Sixth Edition, Foreword by Warren Buffett is one of the most significant books in the history of financial analysis. The theory on which this book is based, was subsequently called Value Investing. 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.

It 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.

Key Features:

This bestselling book has sold more than a million copies.

The book is used as a textbook in Columbia.

This book is the longest running text in the field of investment theories ever published.

What will you learn from this book

  1. Value Investing Principles: Discussing the principles of value investing, which involve analyzing stocks to find those that are undervalued relative to their intrinsic worth.

  2. Fundamental Analysis: Emphasizing the importance of fundamental analysis in evaluating stocks, including examining financial statements, earnings, assets, liabilities, and other quantitative and qualitative factors.

  3. Margin of Safety: Highlighting the concept of the margin of safety, where investors seek a safety buffer by purchasing stocks priced below their calculated intrinsic value.

  4. Market Fluctuations and Emotional Investing: Addressing the impact of market fluctuations and emotional factors on investment decisions, advocating for a disciplined and rational approach.

  5. Risk Assessment: Discussing methods to assess and manage investment risks, including understanding business risks, financial risks, and market risks associated with different securities.

  6. Long-Term Investment Approach: Encouraging a long-term investment perspective rather than short-term speculation, focusing on the fundamentals and the potential for growth over time.

  7. Diversification: Explaining the concept of diversification and its role in managing risk within an investment portfolio to reduce exposure to individual stock fluctuations.

  8. Intrinsic Value Calculation: Discussing various methods for calculating intrinsic value, such as discounted cash flow (DCF) analysis, relative valuation, and assessing qualitative factors.

  9. Market Efficiency and Inefficiencies: Addressing the concept of market efficiency and how investors can exploit market inefficiencies to find undervalued securities.

  10. Investor Behavior and Psychology: Highlighting the influence of investor behavior, biases, and psychology on investment decision-making and how to mitigate irrationality in investing.

Language English
ISBN-10 0070140650
ISBN-13 9780070140653
No of pages 816
Font Size Medium
Book Publisher McGraw-Hill
Published Date 01 Jul 2017

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