I’ve often read comparisons between Damodaran and McKinsey’s valuation books, and obviously have heard a lot about Security Analysis, but never saw the books all compared to one another. I think I may be misunderstanding what each book is supposed to teach, as it seems to me that security analysis and valuation are very much intertwined. Has anyone read Damodaran’s books/works and Security Analysis? If so, I’d really appreciate hearing a bit about how they differ. I’m looking to develop a good foundation in understanding and valuing companies and their securities, and am not sure if one is a better starting point than the other (Stephen Penman also has a textbook that has gotten a few good reviews). Note that I have a fair bit of finance experience so the fact that one may be too advanced is not a huge issue. Thanks!
There are countless books on the topic of “finance.” It really depends on what you want to get out of it. Damodaran is all about the present value of future cash flows, and is often geared toward valuing any asset on this basis. There are other books that might be more relevant depending on what you hope to gain from reading a book (for example, a financial engineering book).
True. To clarify, I’m focused on fundamental company research and valuation (so not so much black scholes, structured credit, etc.). This is why I’ve narrowed my horizon down to Damodaran and Graham/Dodd (although I guess the question here is how their texts fundamentally differ).