Security Analysis

“Security Analysis” has been in print continuously ever since it was first published in 1934. This alone witnesses this book’s relevance.
Numerous investors have made fortunes basing their investing practices on Benjamin Graham and David Dodd’s principles of value investing.

Even the legendary Warren Buffett calls this book his Bible.

Benjamin Graham Benjamin Graham passed away in 1976, but until today his theories remain relevant. He was the founder of the value school of investing, a co-author of several books on finance and investing and is considered the father of modern security analysis.
David Dodd was an assistant professor of finance at Columbia University in New York City.

Security analysis is a process of deciding which securities would be good investments.
It is an investment which keeps the principal safe, and on top of that delivers a return.
Any kind of investment that does not meet these two conditions is not an investment, but speculation.
Market analysis, unlike security analysis, tries to forecast the action of the market, or the prices on individual securities, without looking at facts about different companies.
There are a few types of market analysis.
One of them, called technical analysis, uses past market values to forecast future prices.
The other one uses indices of external economic activity, that has influence over the prices of the securities.
However, experience has shown that none of these market analysis is valid. In fact, the only thing they do is promoting speculation over fact-based investments.