Is this old text still useful and insightful? What do you think of it? http://www.amazon.com/Security-Analysis-Foreword-SECURITY-ANALYSIS/dp/B001THYL6C/ref=sr_1_1?ie=UTF8&s=books&qid=1244178643&sr=1-1
You mean that “old text” that has been updated with modern commentary? Just because it was originally written decades ago doesn’t mean that it’s useless. Use the search function. When the updated text was released there was a pretty decent discussion on it.
I did, there was only one decent thread about it.
Well then there you go. One decent thread. Let’s do a run-down line by line here + 6th Edition is based on the 1940 version - which most people thing was the best + Ben Graham is the modern founder of Value Investing + Ben Graham advocated for an exam that tested the general competency of analysts (hint you may be studying for this exam as we speak) + Ben Graham is credited with teaching and inspiring many of the best investors (hint Warren Buffett may be amongst them) + Ben Graham also wrote The Intelligent Investor (excellent book so I had to give him an extra plus for it) - The text includes dated examples that are no longer applicable - The text is more like a tome - The methods employed are in some cases no longer effective or opportunities no longer available - net-net’s formerly were not available except in the micro-cap space, but during the past 12 months, these opportunities have become more prevalent - There are investors today that have expanded upon Graham’s framework and added their own twist - Whitman, Greenblatt, Klarman, Berkowitz, Buffett in his former years (he doesn’t count today because he is running a different animal), etcetera - just to name a few. So maybe you want to read about them instead. Or this could be another plus. If you are interested in value investing then go ahead and give it a whirl, otherwise let it collect dust in the bookstore.
I think its the best book on investing. I doubt there is a better book out there, if so, please let me know. I don’t think one should read it and try to practice word for word what Graham prescribes. Its more of an introduction to gain an understanding on security valuation. to me, its a must read. though i have to say graham is a bit too conservative for even my taste, he provides a roadmap on where to start. its common sense investing with technical substance.
What ValueAddict and FrankArabia said!
ValueAddict Wrote: ------------------------------------------------------- > Well then there you go. One decent thread. Let’s > do a run-down line by line here > > - The text includes dated examples that are no > longer applicable > - The text is more like a tome > - The methods employed are in some cases no longer > effective or opportunities no longer available - > net-net’s formerly were not available except in > the micro-cap space, but during the past 12 > months, these opportunities have become more > prevalent > - There are investors today that have expanded > upon Graham’s framework and added their own twist > - Whitman, Greenblatt, Klarman, Berkowitz, Buffett > in his former years (he doesn’t count today > because he is running a different animal), > etcetera - just to name a few. So maybe you want > to read about them instead. Or this could be > another plus. > > If you are interested in value investing then go > ahead and give it a whirl, otherwise let it > collect dust in the bookstore. Thanks guys. This is what I was worried about. I have the intelligent investor too, so which book is more applicable and worth reading? Also, I don’t know which parts to skip.
what are you worried about? just pick up the book. you’ll realize very quickly which sections are of concern to you. I started by reading the intro and went right ot equity analysis. then i reread the whole thing and realized a lot of it is useful as well. For instance, analyzing a fixed income security is sorta a easier version of analyzing equity and he’ll show you why. though some of the examples are dated, it is suppose to illustrate his thoughts so I still think those examples are useful. YOu just kinda have to adjust it for modern day by your knowledge. but honestly, if you read intelligent investor and you’re not sold or captivated by it, you’re problably not going to find his text anymore interesting or useful.
May have been slightly outdated, but was an amazing book to read in undergrad. It was the most important book I ever read back then, and it was the reason I switched from the sciences to finance/econ. A must-read for any investments person…
I bought the non-leatherbound $70 discontinued 6th Edition. The current one that is being printed is the same thing, but leather bound and expensive at $160.
Good synopsis ValueAddict and I guess by your name that this is your area of expertise. Would you mind giving us your list of recommended supplementary texts?