Security Analysis, Part III - Senior Securities With Speculative Features

by Benjamin Graham, David L. Dodd

This chapter is from Security Analysis , which has withstood the test of time as well or better than any investment book ever published. Now the Sixth Edition updates the masters' ideas and adapts them for the 21st century's markets. This second edition, which was published in 1940 and still considered the definitive edition, has been updated by a dream team of some of today's leading value investors. 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.

Genres: Finance, Business, Money, Economics, Personal Finance, Nonfiction

117 pages, Kindle Edition

Published January 13, 2009

About the author

Benjamin Graham was a British-born American financial analyst, investor and professor. He is widely known as the "father of value investing", and wrote two of the discipline's founding texts: Security Analysis (1934) with David L. Dodd, and The Intelligent Investor (1949). His investment philosophy stressed independent thinking, emotional detachment, and careful security analysis, emphasizing the importance of distinguishing the price of a stock from the value of its underlying business.
After graduating from Columbia University at age 20, Graham started his career on Wall Street, eventually founding Graham–Newman Corp., a successful mutual fund. He also taught investing for many years at Columbia Business School, where one of his students was Warren Buffett. Graham later taught at UCLA Anderson School of Management at the University of California, Los Angeles.
Graham laid the groundwork for value investing at mutual funds, hedge funds, diversified holding companies, and other investment vehicles. He was the driving force behind the establishment of the profession of security analysis and the Chartered Financial Analyst designation. He also advocated the creation of index funds decades before they were introduced. Throughout his career, Graham had many notable disciples who went on to earn substantial success as investors, including Irving Kahn and Warren Buffett, who described Graham as the second most influential person in his life after his own father. Among other well-known investors influenced by Graham were Charles D. Ellis, Mario Gabelli, Seth A. Klarman, Howard Marks, John Neff and John Marks Templeton.

Reviews

[Eskay Theaters & Smart Homes · Rating 4 out of 5]

This book is still used as the gospel in the Investing (what some may call Value investing) industry almost a century after its first release. Go Figure.

[Jagordo · Rating 3 out of 5]

Better viewed as a history lesson in markets than an actual guide to modern analysis; the science and models used today are so far removed from Dodd and Graham's teachings that it is almost counterproductive from a purely practicing standpoint. That said, the core principles hold true. If you are just reading this for those, then you will not be disappointed; just keep in mind that this is a literal textbook and thus will have an 8:1 ratio of examples to lessons.

[Tom Greulich · Rating 4 out of 5]

More in-depth than The Intelligent Investor, principles still largely applicable.

[Philip Chwistek · Rating 4 out of 5]

I found the chapter introductions written by Klarman, Greenwald, Berkowitz, et al. to be the real value of this edition. If you’re a really hardcore value investor and have time to spare, go ahead and read everything (but it can be quite dense, dry, and difficult to relate to). However, I recommend anyone to go through the commentary offered in the introductions.

[Jack Wiggins · Rating 3 out of 5]

It’s a good guide to the basics of sound investing principles. However, it’s an old book and you definitely have to be very interested in finance to get through it. Recommend for someone looking to sit down and study. Would not recommend for someone wanting a light evening read 😂

[Montague Charlton · Rating 4 out of 5]

A classic.

[Steven Mao · Rating 5 out of 5]

Bonds

[Michiel · Rating 3 out of 5]

The theory discussed in the book might be a little obsolete. Still, the main message is timeless, the genius and philosophy of Graham and Dodd in financial markets is unprecedented.

[Jarlin t · Rating 4 out of 5]

Difficult read but very informative

[Madhan Babu · Rating 5 out of 5]

The Bhagavatgita / Kurhan / Bible of investment relegion :)

[Pedro Maureira · Rating 5 out of 5]

It is full of people criticizing this book because it used old financial material of companies that have merged or are about railroads...If you read a pretty old book you gotta give it a break in some areas, and at least try to fit it to you reality so you learn something (there is A LOT to learn from this book, probably will be reading many times more).

Of course you gotta update your knowledge from this book, but it is a PRETTY GOOD start. 10/10

[Prijath Babu · Rating 5 out of 5]

Best book for any one who seriously thinking about investing in stock market