For decades, Security Analysis by Ben Graham and David Dodd has been considered a must read and with good reason. The book is widely considered a classic due to in large part for introducing a framework that is considered businesslike opposed to the speculative nature that Wall Street was used to at the time. The book introduced concepts and ideas that were foreign to Wall Street. For example, prior to Security Analysis, Wall Street put great emphasis on the companies earnings results opposed to the business assets and liabilities. Not much has changed.
I have tried reading Security Analysis but shipped the book back in large part to time constraints. The first couple of chapters were long and boring. I respect Graham for his contributions in the financial world, but his style of writing is very dull. I plan to read the book when I have more time, but for right now, its on my “read later” list.
Why I currently have no inclination in reading Security Analysis?
- For starters, The Intelligent Investor is an easier read. At the same time, The Intelligent Investor is half the size and Graham’s style of writing improves.
- A special 75th anniversary is in the works for Security Analysis.
- I like to read books in which the examples used are still around
- I can let others due the reading. (see below)
Chapter Summaries Are Available
I am not lazy, I simply do not have time to read a 700+ page book. So, I found chapter summaries for Security Analysis on the Barel Karsan blog. The authors have almost completed the book and provide chapter summaries on their blog, a huge time saver!
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Hey Alex, thanks for the mention! We’re both agreed on the contribution Security Analysis has brought us, but it would be arrogant of me to presume I can reproduce the complete benefits of the book in those summaries.
Let me know if you have any comments on them tho, but I hope eventually you find the time to read it yourself (I actually can’t put it down, so we disagree on its level of entertainment!!).
-Saj
I’d definitely recommend reading the book some time, read the 75th anniversary edition when it comes out in the fall…If nothing else, you’ll learn a tremendous amount about thinking about investing, valuation, rational thought. If you need to skip sections, skip em, but at least read the chapters of interest.
Second, if you don’t read gannononinvesting.com, Geoff Gannon is going chapter by chapter through the book, he’s already done a few, so start reading ‘em now!
Saj,
Than you for actually taking the time for doing the heavy lifting! Ill try to read one of your chapter notes on the weekend.
Jeff,
I know Geoff is reading the book right now and is also taking notes. Im also waiting for the new edition. You guys have high expectations for it?
I agree, the book was worth the time. It is a difficult read, but conquering it for most shouldn’t be a problem if you are truly interested in value investing. There are some great points that may be missed just by reading chapter summary notes. I would recommend a background in accounting and value investing to get the most from it. It has really shaped my thoughts on valuing a business both through thought processes and modeling.
I agree with Darin, you do need to have some basic accounting knowledge or you will gain very little. The Intelligent Investor is a much better read for those who are still trying to acquire that knowledge. And yeah I definitely have to skip over some great points in making the summaries.
Alexg, I know nothing about the new edition. But I have no interest in it really since the authors aren’t around anyway. I read a new edition of the Intelligent Investor with some new author adding in his own two cents and I wasn’t greatly impressed, so maybe that’s clouding my judgement and I should give the SA version you speak of a chance.
Hi Alex,
I bought the new edition of Security Analysis and like you said in your blog it was not just boring but difficult to understand the concepts. I tried to go to Barel Karsan’s blog but can’t find the chapter summaries for this book. Can you tell me where to find it ? thanks.
Alex,
I just located where are the chaper summaries for Security Analysis.
To anyone who is reading this, Security Analysis is one of the greatest works ever written. In my opinion, you don’t have time NOT to read it.
Of course, you shouldn’t take e v e r y s i n g l e t h i n g said in any book, even the best, as the absolute truth. You should read Philip Fisher, William Nickerson, Adam Smith, John Burr Williams, John Bogle, Douglas Andrew, and so on, and take all the gems from each book, no matter how small, even if there is only one, and piece together your own method of creating wealth. Don’t be a sheep, be a sheperd, and put together your own flock.
That being said, read Security Analysis, and read it well. Highlight important points, draw arrows, create charts and diagrams representing key points. Master this material. You owe it to yourself. If you want to be an expert investor, you will put in this amount of effort. You won’t make it if by half-assing. This book is a priceless gem, and, although it may take several months of reading and research to understand its concepts, it will be well worth your while.