Security Analysis

by Scott Beaton
(Canmore, AB)

Security Analysis is the original text by Benjamin Graham that opens up the world of value investing. Co-written by David Dodd, this text is an in-depth look at valuing companies and their various financing devices.

Security Analysis covers advanced topics in stock, bond and other financial instrument analysis. While there are sections covering the broad principles used, this text is focused more on applying these principles. For readers who enjoyed The Intelligent Investor and want to get a more in-depth look at its applications, this is a great place to start.

I read Security Analysis in 2010 and found it to be a heavier read than The Intelligent Investor. A good understanding of financial statements and the basics of accounting is recommended before taking on this book. While there is much to be learned from reading Security Analysis, it is not for the faint-of-heart. I definitely recommend it for seasoned investors and readers of The Intelligent Investor.