Authors: Benjamin Graham and David Dodd.
Year of Publication: 1934.
Synopsis: "Security Analysis," co-authored by Benjamin Graham and David Dodd and first published in 1934, is a seminal work that laid the foundation for modern value investing and security analysis.
Graham and Dodd's approach to investment analysis focuses on a meticulous evaluation of a company's financial statements, industry position, and overall economic outlook. The book introduces the concept of "intrinsic value," emphasizing the importance of buying securities that are priced below their intrinsic worth to achieve a margin of safety.
With a detailed and rigorous methodology, the authors explore various types of securities, including stocks and bonds, and provide guidelines for assessing their potential risks and rewards. They emphasize the significance of conducting thorough research and utilizing conservative assumptions to make sound investment decisions.
"Security Analysis" remains highly regarded for its comprehensive insights into financial analysis and its influence on subsequent generations of investors. While some of its techniques may require adaptation to contemporary markets, the core principles of disciplined analysis and long-term thinking continue to provide valuable guidance to investors seeking to navigate the complexities of the financial world.
