Security analysis: principles and technique

Table of Content

Foreword • by Warren E. Buffett
Preface to the Sixth Edition | The Timeless Wisdom of Graham and Dodd • by Seth A. Klarman
Introduction to the Sixth Edition | Benjamin Graham and Security Analysis: The Historical Backdrop • by James Grant

PART I: SURVEY AND APPROACH
Introduction to Part I | The Essential Lessons by Roger Lowenstein

Graham and Dodd chapters:
1. THE SCOPE AND LIMITS OF SECURITY ANALYSIS. THE CONCEPT OF INTRINSIC VALUE
2. FUNDAMENTAL ELEMENTS IN THE PROBLEM OF ANALYSIS. QUANTITATIVE AND QUALITATIVE FACTORS
3. SOURCES OF INFORMATION
4. DISTINCTIONS BETWEEN INVESTMENT AND SPECULATION
5. CLASSIFICATION OF SECURITIES

PART II: FIXED-VALUE INVESTMENTS
Introduction to Part II | Unshackling Bonds • by Howard S. Marks

Graham and Dodd chapters:
6. THE SELECTION OF FIXED-VALUE INVESTMENTS
7. THE SELECTION OF FIXED-VALUE INVESTMENTS: SECOND AND THIRD PRINCIPLES
8. SPECIFIC STANDARDS FOR BOND INVESTMENT
9. SPECIFIC STANDARDS FOR BOND INVESTMENT (CONTINUED) see accompanying CD
10. SPECIFIC STANDARDS FOR BOND INVESTMENT (CONTINUED)
11. SPECIFIC STANDARDS FOR BOND INVESTMENT (CONTINUED) see accompanying CD
12. SPECIAL FACTORS IN THE ANALYSIS OF RAILROAD AND PUBLIC-UTILITY BONDS see accompanying CD
13. OTHER SPECIAL FACTORS IN BOND ANALYSIS see accompanying CD
14. THE THEORY OF PREFERRED STOCKS see accompanying CD
15. TECHNIQUE OF SELECTING PREFERRED STOCKS FOR INVESTMENT
16. INCOME BONDS AND GUARANTEED SECURITIES
17. GUARANTEED SECURITIES (CONTINUED)
18. PROTECTIVE COVENANTS AND REMEDIES OF SENIOR SECURITY HOLDERS
19. PROTECTIVE COVENANTS (CONTINUED)
20. PREFERRED-STOCK PROTECTIVE PROVISIONS. MAINTENANCE OF JUNIOR CAPITAL see accompanying CD
21. SUPERVISION OF INVESTMENT HOLDINGS
PART III: SENIOR SECURITIES WITH SPECULATIVE FEATURES
Introduction to Part III | “Blood and Judgement” • by J. Ezra Merkin

Graham and Dodd chapters:
22. PRIVILEGED ISSUES
23. TECHNICAL CHARACTERISTICS OF PRIVILEGED SENIOR SECURITIES
24. TECHNICAL ASPECTS OF CONVERTIBLE ISSUES
25. SENIOR SECURITIES WITHWARRANTS. PARTICIPATING ISSUES. SWITCHING AND HEDGING see accompanying CD
26. SENIOR SECURITIES OF QUESTIONABLE SAFETY
PART IV: THEORY OF COMMON-STOCK INVESTMENT. THE DIVIDEND FACTOR
Introduction to Part IV | Go with the Flow • by Bruce Berkowitz

Graham and Dodd chapters:
27. THE THEORY OF COMMON-STOCK INVESTMENT
28. NEWER CANONS OF COMMON-STOCK INVESTMENT
29. THE DIVIDEND FACTOR IN COMMON-STOCK ANALYSIS
30. STOCK DIVIDENDS see accompanying CD
PART V: ANALYSIS OF THE INCOME ACCOUNT. THE EARNINGS FACTOR IN COMMON-STOCK VALUATION
Introduction to Part V | The Quest for Rational Investing by Glenn H. Greenberg

Graham and Dodd chapters:
31. ANALYSIS OF THE INCOME ACCOUNT
32. EXTRAORDINARY LOSSES AND OTHER SPECIAL ITEMS IN THE INCOME ACCOUNT
33. MISLEADING ARTIFICES IN THE INCOME ACCOUNT. EARNINGS OF SUBSIDIARIES
34. THE RELATION OF DEPRECIATION AND SIMILAR CHARGES TO EARNING POWER
35. PUBLIC-UTILITY DEPRECIATION POLICIES see accompanying CD
36. AMORTIZATION CHARGES FROM THE INVESTOR’S STANDPOINT see accompanying CD
37. SIGNIFICANCE OF THE EARNINGS RECORD
38. SPECIFIC REASONS FOR QUESTIONING OR REJECTING THE PAST RECORD
39. PRICE-EARNINGS RATIOS FOR COMMON STOCKS. ADJUSTMENTS FOR CHANGES IN CAPITALIZATION
40. CAPITALIZATION STRUCTURE
41. LOW-PRICED COMMON STOCKS. ANALYSIS OF THE SOURCE OF INCOME
PART VI: BALANCE-SHEET ANALYSIS. IMPLICATIONS OF ASSET VALUES
Introduction to Part VI | Deconstructing the Balance Sheet by Bruce Greenwald

Graham and Dodd chapters:
42. BALANCE-SHEET ANALYSIS. SIGNIFICANCE OF BOOK VALUE
43. SIGNIFICANCE OF THE CURRENT-ASSET VALUE
44. IMPLICATIONS OF LIQUIDATING VALUE. STOCKHOLDER-MANAGEMENT RELATIONSHIPS
45. BALANCE-SHEET ANALYSIS (CONCLUDED)
PART VII: ADDITIONAL ASPECTS OF SECURITY ANALYSIS. DISCREPANCIES BETWEEN PRICE AND VALUE
Introduction to Part VII | The Great Illusion of the Stock Market and the Future of Value Investing • by David Abrams

Graham and Dodd chapters:
46. STOCK-OPTIONWARRANTS see accompanying CD
47. COST OF FINANCING AND MANAGEMENT
48. SOME ASPECTS OF CORPORATE PYRAMIDING
49. COMPARATIVE ANALYSIS OF COMPANIES IN THE SAME FIELD
50. DISCREPANCIES BETWEEN PRICE AND VALUE
51. DISCREPANCIES BETWEEN PRICE AND VALUE (CONTINUED)
52. MARKET ANALYSIS AND SECURITY ANALYSIS
PART VIII: GLOBAL VALUE INVESTING
Globetrotting with Graham and Dodd • by Thomas A. Russo

APPENDIX see accompanying CD
About This Edition
Acknowledgments
About the Contributors
About the Authors
Index

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 200 additional pages of 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, L.L.C. 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 L.P.
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.