Security Analysis is arguably of one the best investment books transcending generations ever since it as first published in 1935. To date, it is still widely used by aspiring investors and professionals as a guide to help them in their journey to wealth. Written by Benjamin Graham and David Dodd, two of the people instrumental to launching the highly successfully career of the Oracle of Omaha. Warren Buffett only has high praise for the book and the authors, "They laid a roadmap for investing that I have now been following for 57 years. There's been no reason to look for another."
We will break down the principles ideas, and insights shared from the book and see how it would help us make investing decisions and guide us through from being part of the herd to becoming an Intelligent Investor.
We continue the discussion with more insights on investing.
Questions that need answered before Investing:
1. How stable is the enterprise, and what are its future prospects?
2. What are its earnings and cash flow?
3. What is the downside risk of owning it?
4. What is its liquidation value?
5. How capable and honest is its management?
6. What factors might cause the owner of this business to sell control at a bargain price?
