Security Analysis, 6th Edition

First published in 1934, Security Analysis is one of the most influential financial books ever written. Selling more than one million copies through five editions, it has provided generations of investors with the timeless value investing philosophy and techniques of Benjamin Graham and David L. Dodd.

As relevant today as when they first appeared nearly 75 years ago, the teachings of Benjamin Graham, the father of value investing, have withstood the test of time across a wide diversity of market conditions, countries, and asset classes.

This new sixth edition, based on the classic 1940 version, is enhanced with 200 additional pages of commentary from some of today's leading Wall Street money managers. These masters of value investing explain why the principles and techniques of Graham and Dodd are still highly relevant even in today's vastly different markets. The contributor list includes:

• Seth A. Klarman, president of The Baupost Group, L.L.C. and author of Margin of Safety
• James Grant, founder of Grant's Interest Rate Observer, general partner of Nippon Partners
• Jeffrey M. Laderman, twenty-five year veteran of BusinessWeek
• Roger Lowenstein, author of Buffett: The Making of an American Capitalist and When America Aged and Outside Director, Sequoia Fund
• Howard S. Marks, CFA, Chairman and Co-Founder, Oaktree Capital Management L.P.
• J. Ezra Merkin, Managing Partner, Gabriel Capital Group .
• Bruce Berkowitz, Founder, Fairholme Capital Management.
• Glenn H. Greenberg, Co-Founder and Managing Director, Chieftain Capital Management
• Bruce Greenwald, Robert Heilbrunn Professor of Finance and Asset Management, Columbia Business School
• David Abrams, Managing Member, Abrams Capital

Featuring a foreword by Warren E. Buffett (in which he reveals that he has read the 1940 masterwork “at least four times, this new edition of Security Analysis will reacquaint you with the foundations of value investing”more relevant than ever in the tumultuous 21st century markets.

Foreword by Warren E. Buffett
Preface to The Sixth Edition | The Timeless Wisdom of Graham and Dodd by Seth A. Klarman
Introduction to The Sixth Edition | Benjamin Graham and Security Analysis  : The Historical Backdrop by James Grant

Part I : Survey and Approach
Introduction to Part I | The Essential Lessons by Roger Lowenstein
Graham and Dodd Chapters:
Chapter 1 : The Scope and Limits of Security Analysis. The Concept of Intrinsic Value
Chapter 2 : Fundamental Elements in The Problem of Analysis. Quantitative and Qualitative Factors
Chapter 3 : Sources of Information
Chapter 4 : Distinctions Between Investment and Speculation
Chapter 5 : Classification of Securities

Part II : Fixed-Value Investments
Introduction to Part II | Unshackling Bonds by Howard S. Marks
Graham and Dodd Chapters:
Chapter 6 : The Selection of Fixed-Value Investments
Chapter 7 : The Selection of Fixed-Value Investments : Second and Third Principles
Chapter 8 : Specific Standards for Bond Investment
Chapter 9 : Specific Standards for Bond Investment (Continued) See Accompanying CD
Chapter 10 : Specific Standards for Bond Investment (Continued)
Chapter 11 : Specific Standards for Bond Investment (Continued) See Accompanying CD
Chapter 12 : Special Factors in The Analysis of Railroad and Public-Utility Bonds See Accompanying CD
Chapter 13 : Other Special Factors in Bond Analysis See Accompanying CD
Chapter 14 : The Theory of Preferred Stocks See Accompanying CD
Chapter 15 : Technique of Selecting Preferred Stocks for Investment
Chapter 16 : Income Bonds and Guaranteed Securities
Chapter 17 : Guaranteed Securities (Continued)
Chapter 18 : Protective Covenants and Remedies of Senior Security Holders
Chapter 19 : Protective Covenants (Continued)
Chapter 20 : Preferred-Stock Protective Provisions. Maintenance of Junior Capital See Accompanying CD
Chapter 21 : Supervision of Investment Holdings

Part III : Senior Securities With Speculative Features
Introduction to Part III | "Blood and Judgement" by J. Ezra Merkin
Graham and Dodd Chapters:
Chapter 22 : Privileged Issues
Chapter 23 : Technical Characteristics of Privileged Senior Securities
Chapter 24 : Technical Aspects of Convertible Issues
Chapter 25 : Senior Securities Withwarrants. Participating Issues. Switching and Hedging See Accompanying CD
Chapter 26 : Senior Securities of Questionable Safety

Part IV : Theory of Common-Stock Investment. The Dividend Factor
Introduction to Part IV | Go With The Flow by Bruce Berkowitz
Graham and Dodd Chapters:
Chapter 27 : The Theory of Common-Stock Investment
Chapter 28 : Newer Canons of Common-Stock Investment
Chapter 29 : The Dividend Factor in Common-Stock Analysis
Chapter 30 : Stock Dividends See Accompanying CD

Part V : Analysis of The Income Account. The Earnings Factor in Common-Stock Valuation
Introduction to Part V | The Quest for Rational Investing by Glenn H. Greenberg
Graham and Dodd Chapters:
Chapter 31 : Analysis of The Income Account
Chapter 32 : Extraordinary Losses and Other Special Items in The Income Account
Chapter 33 : Misleading Artifices in The Income Account. Earnings of Subsidiaries
Chapter 34 : The Relation of Depreciation and Similar Charges to Earning Power
Chapter 35 : Public-Utility Depreciation Policies See Accompanying CD
Chapter 36 : Amortization Charges From The Investor's Standpoint See Accompanying CD
Chapter 37 : Significance of The Earnings Record
Chapter 38 : Specific Reasons for Questioning or Rejecting The Past Record
Chapter 39 : Price-Earnings Ratios for Common Stocks. Adjustments for Changes in Capitalization
Chapter 40 : Capitalization Structure
Chapter 41 : Low-Priced Common Stocks. Analysis of The Source of Income

Part VI : Balance-Sheet Analysis. Implications of Asset Values
Introduction to Part VI | Deconstructing The Balance Sheet by Bruce Greenwald
Graham and Dodd Chapters:
Chapter 42 : Balance-Sheet Analysis. Significance of Book Value
Chapter 43 : Significance of The Current-Asset Value
Chapter 44 : Implications of Liquidating Value. Stockholder-Management Relationships
Chapter 45 : Balance-Sheet Analysis (Concluded)

Part VII : Additional Aspects of Security Analysis. Discrepancies Between Price and Value
Introduction to Part VII | The Great Illusion of The Stock Market and The Future of Value Investing by David Abrams
Graham and Dodd Chapters:
Chapter 46 : Stock-Optionwarrants See Accompanying CD
Chapter 47 : Cost of Financing and Management
Chapter 48 : Some Aspects of Corporate Pyramiding
Chapter 49 : Comparative Analysis of Companies in The Same Field
Chapter 50 : Discrepancies Between Price and Value
Chapter 51 : Discrepancies Between Price and Value (Continued)
Chapter 52 : Market Analysis and Security Analysis

Part VIII : Global Value Investing
Globetrotting With Graham and Dodd by Thomas A. Russo

Appendix See Accompanying CD
About This Edition
Acknowledgments
About The Contributors
About The Authors
Index