Chuck Sears Security Analysis by Benjamin Graham and David L. Dodd is a foundational text in the field of value investing. Published during the Great Depression, it emphasizes the importance of analyzing a company’s financial health and intrinsic value before making investment decisions. The book introduces key concepts like the “margin of safety,” which advocates for investing in securities priced below their intrinsic value to minimize risk.
The authors stress the distinction between investment and speculation, urging investors to focus on thorough analysis and long-term strategies. They provide detailed methods for evaluating financial statements, understanding market trends, and identifying undervalued securities. The book also critiques Wall Street’s focus on earnings trends and highlights the importance of transparency in corporate financial reporting.
This classic work remains relevant for investors seeking to make informed decisions based on fundamental analysis.
You can get Security Analysis by Benjamin Graham and David L. Dodd here.
