I just ordered Benjamin Graham’s Security Analysis 6th Edition, which is the new and updated edition and includes some of today’s top value investors. Among them,  Bruce Berkowitz, Seth Klarman, Gleen Greenberg, and a few others. At one point,  I did own the 1951 edition but between a new job and school, it pretty much collected dust. If you haven’t seen or read Security Analysis, its an intimidating book and its definitely not for beginners. For value investing beginners, I would recommend Benjamin Graham’s other book The Intelligent Investor which is intended for the casual investor. The book is often called the “value investing bible” and for good reason. It looks like a bible!!! Its about 800 pages long and  is full of details and numbers. The main reason I decided to go with the new edition is due to it having updated examples. I simply grasp things easier.

Why I’m I Purchasing Security Analysis Despite reading The Intelligent Investor?

For one, the school semester is over and I will have a lot more time on my hands to catch up on reading. Secondly, Security Analysis has withstood the test of time. According to Amazon.com, the various edition have sold over 1 million copies ever since the book was released over 75 years ago.  Also, as a value investor, I feel as if something is missing.  In addition, to read an 800 page book is somewhat of a challenge. While I have read several long books, 800 pages of value investing is sure to be a challenge. Plus, the minds behind the book are well worth the read in itself. Finally, more than ever Security Analysis should reinforce my framework on stocks . For years, I have done a remarkable job managing a bit of money and managing virtual portfolios but I plan to take my career to the next step as graduation is around the corner. I have several projects that will hopefully allow me to invest more money and would look for any nugget that will help me improve my returns.

Warren Buffett On Benjamin Graham and Security Analysis

Below is a video I uploaded onto Youtube. Its Warren Buffett giving a 5 minute speech on what Benjamin Graham and his investment books meant to him.

What I expect To Get From Security Analysis?

Value Investor Martin Whitman once said, “the funny thing about Graham and Dodd is, everyone talks about them and nobody read them”. I don’t want to fall under Whitman’s comment. While I have read my fair share of Value Investing books, Security Analysis most likely will be the one that completes my library. Its a gut feeling but its a good feeling. I have read a great number of value investing books but my thinking behind each purchases goes along the lines of “If I learn just one thing, it was well worth the purchase.” So far, I have learned something from each value investing book that I have read. I also hope to expand my knowledge on the credit side of things. I have put analyzing credit on the back seat and hopefully I will become above average in that area of security analysis. Finally, I will be reading the book from a value investing fa perspective. I fell in love with value investing and over time have developed my unique idea of analysis securities. Below are two virtual funds I manage. Not bad right? I’m working on getting my real money portfolio up and running soon but that’s another story in itself.

Related posts:

1. Technical Analysis Vs Fundamental Analysis: What’s The Difference?
2. Bill Ackman’s Reading List