Graham & Dodd's Security Analysis is still...

2008-11-01T13:50:00.000+11:00

Graham & Dodd's Security Analysis is still relevant because it isn't about using some magic formula or spreadsheet calculators to select stocks. It's about a way of thinking about investments vs speculations... that distinction has never changed, and it never will. If we keep that in mind, we can apply the same principles to any area of investments where price doesn't reflect value.

The following from the two prefaces seem especiall...

2008-11-01T13:07:00.000+11:00

The following from the two prefaces seem especially noteworthy...

"For security analysis proper, the new uncertainties [1940] may complicate its subject matter, but they should not alter its foundations or its methods."

-- Which, 68 years after, has turned out to be correct -- we still find Graham and Dodd's book relevant.

"We have stressed the technique of discovering bargain issues beyond its relative importance in the entire field of investment, because in this activity the talents peculiar to the securities analyst find perhaps their most fruitful expression."

-- In other words, this book is not attempting to cover all aspects of investing, or otherwise making or losing money via the bond and/or stock markets.

"While we were writing [1934], we had to combat a wide-spread conviction that financial debacle was to be the permanent order."

-- Once again we encounter such worries about the financial system.

Comments on The Wealth Accumulator: Security Analysis: Second Edition and First Editio...

Graham & Dodd's Security Analysis is still...

The following from the two prefaces seem especiall...