Security Analysis: Principles and Technique, Second Edition

✍ Scribed by Benjamin Graham, David L. Dodd

• Publisher: McGraw-Hill
• Year: 1934
• Tongue: English
• Leaves: 895
• Category: Library

✦ Synopsis

Since its publication,Security Analysis by Graham and Dodd has been the investment bible and has sold more than 750,000 copies. Now the fifth edition of this classic updates the application of the Graham and Dodd valuation approach for today's greatly changed investment environment. This edition brings the Graham and Dodd approach up to date with the changes that have occurred since the last edition was published--changes in investment practices and regulation, several new tax laws, the explosion of new accounting and financial reporting rules, persistent inflation in capital markets, new investment instruments, and more. Maintaining the high standards of prior editions, Security Analysis puts at your fingertips the authoritative guidance on analyzing securities that generations of users have come to rely on. Here in clear, easy-to-use explanations you'll find the tools of financial statement analysis--from the investor's viewpoint and with an investor's notion of income and capital maintenance--that have enabled value investors to keep the edge in a highly competitive market. The book provides the principles and techniques to measure asset values and cash flows so that you can sharpen your judgments of company earnings, refresh your insight into what individual companies are worth, and evaluate how much debt a leveraged company can service. You'll find practical guidance to make better investment decisions whether you're a security analyst, portfolio manager, broker/dealer, investment banker, credit officer, or a serious individual investor. Heavily illustrated with examples taken from real companies, Security Analysis, Fifth Edition, is an investment book like no other for investors who aspire to the highest investment accomplishments.

✦ Table of Contents

Copyright......Page 4
Preface to the Second Edition......Page 7
Preface to the First Edition......Page 9
Contents......Page 11
Introduction: Problems of Investment Policy......Page 17
Part I: Survey and Approach......Page 33
1. The Scope and Limitations of Security Analysis. The Concept of Intrinsic Value......Page 35
2. Fundamental Elements in the Problem of Analysis. Quantitative and Qualitative Factors......Page 49
3. Sources of Information......Page 63
4. Distinctions Between Investment and Speculation......Page 74
5. Classification of Securities......Page 86
Part II: Fixed-Value Investments......Page 95
6. The Selection of Fixed-Value Investments......Page 97
7. The Selection of Fixed-Value Investments: Second and Third Principles......Page 110
8. Specific Standards for Bond Investment......Page 125
9. Specific Standards for Bond Investment (Continued)......Page 136
10. Specific Standards for Bond Investment (Continued)......Page 153
11. Specific Standards for Bond Investment (Continued)......Page 163
12. Special Factors in the Analysis of Railroad and Public-Utility Bonds......Page 175
13. Other Special Factors in Bond Analysis......Page 195
14. The Theory of Preferred Stocks......Page 201
15. Technique of Selecting Preferred Stocks for Investment......Page 213
16. Income Bonds and Guaranteed Securities......Page 225
17. Guaranteed Securities (Continued)......Page 238
18. Protective Covenants and Remedies of Senior Security Holders......Page 252
19. Protective Covenants (Continued)......Page 265
20. Preferred-Stock Protective Provisions. Maintenance of Junior Capital......Page 276
21. Supervision of Investment Holdings......Page 289
Part III: Senior Securities With Speculative Features......Page 299
22. Privileged Issues......Page 301
23. Technical Characteristics of Privileged Senior Securities......Page 311
24. Technical Aspects of Convertible Issues......Page 325
25. Senior Securities Withwarrants. Participating Issues. Switching and Hedging......Page 335
26. Senior Securities of Questionable Safety......Page 347
Part IV: Theory of Common-Stock Investment. The Dividend Factor......Page 361
27. The Theory of Common-Stock Investment......Page 363
28. Newer Canons of Common-Stock Investment......Page 382
29. The Dividend Factor in Common-Stock Analysis......Page 392
30. Stock Dividends......Page 409
Part V: Analysis of the Income Account. The Earnings Factor in Common-Stock Valuation......Page 421
31. Analysis of the Income Account......Page 423
32. Extraordinary Losses and Other Special Items in the Income Account......Page 438
33. Misleading Artifices in the Income Account. Earnings of Subsidiaries......Page 449
34. The Relation of Depreciation and Similar Charges to Earning Power......Page 467
35. Public-Utility Depreciation Policies......Page 486
36. Amortization Charges From the Investor's Standpoint......Page 501
37. Significance of the Earnings Record......Page 528
38. Specific Reasons for Questioning or Rejecting the Past Record......Page 543
39. Price-Earnings Ratios for Common Stocks. Adjustments for Changes in Capitalization......Page 552
40. Capitalization Structure......Page 563
41. Low-Priced Common Stocks. Analysis of the Source of Income......Page 576
Part VI: Balance-Sheet Analysis. Implications of Asset Values......Page 589
42. Balance-Sheet Analysis. Significance of Book Value......Page 591
43. Significance of the Current-Asset Value......Page 602
44. Implications of Liquidating Value. Stockholder-Management Relationships......Page 618
45. Balance-Sheet Analysis (Concluded)......Page 634
Part VII: Additional Aspects of Security Analysis. Discrepancies Between Price and Value......Page 657
46. Stock-Optionwarrants......Page 659
47. Cost of Financing and Management......Page 671
48. Some Aspects of Corporate Pyramiding......Page 682
49. Comparative Analysis of Companies in the Same Field......Page 692
50. Discrepancies Between Price and Value......Page 707
51. Discrepancies Between Price and Value (Continued)......Page 726
52. Market Analysis and Security Analysis......Page 735
Appendix......Page 749
Index......Page 865