Book
Name: Security Analysis: Sixth Edition, Foreword by Warren Buffett.
Author:
Benjamin Graham, David Dodd.
Security
Analysis: Sixth Edition, Foreword by Warren Buffett is one of the most
significant books in the history of financial analysis. The theory on which
this book is based, was subsequently called Value Investing. The book attempts
to teach the investors a new approach to assess the business that lay behind
security. This book contains many examples based on actual events to show the
tendency of markets to undervalue some securities that don't seem to be
favorable. It explains how this could help the savvy opportunists, if assessed
rightly. It basically shows how an investor who is professionally trained can
utilize the financial analysis of the corporation to determine the intrinsic
value of a company. Security Analysis further explains how Graham's
margin-of-safety principle can be used to make profit. It shows the investors
how stocks can be bought when the market price is way below its original value
and then earn good returns. The book also discusses the genesis of corporate
finance and financial analysis. Security Analysis: Sixth Edition, Foreword by
Warren Buffett was published on 25th November, 2008 and is available in
hardcover. It includes a short introduction to the book by Warren Buffet who
benefited immensely from this book.