4 comments about The Intelligent Investor CD: The Classic Text on Value Investing.

1. Have the book and the CD. They work well together. The CD is great just after reading the book to hammer some of the big picture concepts. The CD is wonderful rush hour material to get you out of that rush hour driving sooner! It is worth the $$ to have both.



2. This book is specifically for invertors not speculators. Haveing this on CD and a book format, its easier to grab the ideas that were written couple of decades and still its worth.



3. I am an eager reader of books on Warren Buffett's investing methods. I really want to like "The Intelligent Investor", but I don't. Unfortunately, Benjamin Graham did not write his books to be timeless. Instead, he wrote them specifically for the investing environments as they existed at the times of publication. This audiobook is of the 1972 edition of "The Intelligent Investor", and it reflects the investing environment of the early 1970's.
   
   The story of Mr. Market and the principle of "a margin of safety" are important concepts contained in this book, but they can be found in other writings by and about Warren Buffett.
   
   There is an updated edition of "The Intelligent Investor" by Jason Zweig. It was published in 2003. Hopefully that is better than the older, outdated editions. It is not (yet) available in audio format.
   
   If you are looking for a good audiobook on Warren Buffett's investing methods, I highly recommend "How to Pick Stocks Like Warren Buffett" by Timothy Vick. The best book on Buffett's investing methods that I have read is "The New Buffettology" by Mary Buffett, but it is not available as an audiobook.



4. Great historical review, a good staple for any investor that is already in the game and understands the basics.

5 comments about Security Analysis: The Classic 1934 Edition.

1. Security Analysis is the most important book ever written about the subject. (...)
   
   Sven Klein, Santa Barbara, CA



2. Yes, this is the best investing book I've ever read, but I never read the 2nd or 3rd editions so maybe they are better? I do know that the 5th edition is absolutely horrible, it wasn't written by Graham and has nothing to do with this book, and you won't learn anything about investing from reading it.
   
   You do need a strong background in accounting to understand this book. There are some archaic accounting terms used in the book that no longer apply today. A law school course in Corporations Law is helful here too.
   
   Nevertheless, every more modern book on "value investing" never really explained it as well as this book written in 1934.
   
   Yes, the book is long, but who said investing should be easy? If you want easy money, go to Vegas. I made hundreds of thousands of dollars in the stock market after I read this book. This book is more valuable than a college education and a lot cheaper.



3. The best book for stock analysis. The thing that impresses me the most is that it takes investors emotions into account--the main reason people don't make money in stocks.



4. My star rating is for the 1934 edition, but this review may appear for other editions of the book.
   
   The 1934 edition came out before the creation of the SEC and deals with a lot of accounting irregularities that are not such a problem today. I suggest you buy a newer edition.
   
   Some people seem to have a preference for the 1940 edition. The 1951 edition was the first one written after the Great Depression, so it dealt with businesses in a more normal economic environment. The 1962 edition was the last written directly by Graham and Dodd, but it is currently unavailable. The 1988 edition is the most recent edition of Security Analysis, but it was updated by other authors years after Graham had died. The 1988 edition is the one currently used as a textbook for Columbia University's Security Analysis course.



5. After reading "Intelligent Investor", I wanted to get into the more technical stuff so I got this book. There is excellent stuff in this book but for an individual investor managing her own money some of the recommended research is not practical. The book is more appropraite for someone who works in the industry such as a mutual fund manager. For example as an individual investor it is just not possible for you to obtain all the necessary information on competitors, industry, suppliers, etc... on every company whose stock you own. The book is very thorough and certainly an excellent reference. In order to follow the authors' recommendation you will have to quit your day job however. Great text book for a business school class.

5 comments about Security Analysis: The Classic 1940 Edition.

1. This book inspired generations of investment masters. Warren Buffett, John Templeton, Jim Rogers, just to name a few. In the book, Graham teaches how to find stocks with good discounts.



2. This is still the best book ever written about investing in the stock market. Long but very good.



3. If you are interested in investing in securities then you should have this book. Although the material is more than 60 years old it remains the baseline for security analysis. This is a reference book, but investors should get into the habit of picking this title up and giving it a read when they have a bit of spare time. It is well indexed and clearly written. There is a lot of historical information also.



4. If you believe in value investing, and you have already read Intelligent INvestor, then this is a fantastic supplement to your library on the subject.



5. This is one of the bibles of value investing. I wouldn't suggest it for a novice investor, though. It's geared more to the experienced investor. Buy it after reading Graham's other book, Intelligent Investor, which is much more reader friendly.

5 comments about The Intelligent Investor: A Book of Practical Counsel.

1. I concur with Ben Graham's star pupil, Warren Buffett, that this is the best book on investing ever made. Although Mr. Buffett modified the approach, the basic ideas pioneered by Mr. Graham such as "margin of safety" and viewing common stocks as shares in a business rather than ticker symbols are still as important as ever.
   
   Robert Stephenson-Padron
   MSc student (economics & finance)
   University of Navarra, Spain



2. Warrent Buffet learnt from Benjamin Graham. That's all one needs to say.



3. Buffett consider this book the best ever written about investment. He wrote the preface for the book. In the preface, he said if we learn two things from the book, first take advantage of Mr. Market (As stock market prices go up and down, we should buy good company stocks with good discounts, and sell to take profits when prices gone too high) and second have Margin of Safety (One should only buy a stock with significant discount to have room for ones valuation error on the stock), he or she should do well in the stock market.



4. This book will deliver a theory on investing, which is no doubt well known, but rarely practiced, while giving you an insight into the psychology of the market.
   
   It begins via explaining the difference between speculations and investing, and outline what profits you can realistically expect to make in bonds, preferred and commons stocks.
   
   It then proceeds into inflation, and explains how an investments in the stock market will provides protection against it. Graham provides a short history lesson on the stock market over the last 100 years and how and why it has fluctuated.
   
   The book then introduce a very important subject Portfolio Policy and recommends the amount an individual should diversify between graham two investment mediums, Bonds and Stocks, and will outline the amount one should hold in each medium with consideration to his/her financial position, what he/she is trying to achieve, and when fund should be rotated between the 2 mediums.
   
   The book then provide a Introduction to investment funds, seeking advice, security analysis, Earnings, Stock Selection, Convertible Issues and warrants, and will compare companies with case studies.
   
   The final chapter of the book titled `Margin of Safety' is a must read and worth the books purchase price alone.
   
   The book will NOT provide an in depth discussion of security analysis, and provides little insight into practicing fundamental analysis and financial statement's. For an understanding of these concepts read Security Analysis also by Benjamin Graham.



5. With an Introduction and Appendix by Warren Buffett (one of the world's most successful and well-known investors), "The Intelligent Investor" is a true classic.
   
   This book outlines Benjamin Graham's core investment philosophy through a number of devices, including direct explanation and "case examples" which compare companies in light of the principles espoused in this excellent book.
   
   This is not the easiest book to read, but it is worth spending the time making it through the entire volume. The book covers the field of investing in general, considerations for defensive investors as well as for "enterprising" investors and the concept of "margin of safety", among other topical areas. Moreover, a number of instructive "case studies" comparing companies add to the value of this publication.
   
   Warren Buffett calls this book, "By far the best book on investing ever written." - a positive and weighty endorsement indeed. I highly recommend this book to anyone with even a passing interest in the field of financial investing.

5 comments about The Little Book of Value Investing (Little Books. Big Profits).

1. Don't let the small size of this book fool you! For anyone who is looking to build, over time, a valueable (read: multi-million dollar) portfolio of stock investments; this book might be all you would need. This book started a path for me that lead me to works by value-investing notable as Benjamin Graham, David Dodd, Mary Buffett, and more. After reading very famous texts by the above authors and more, I decided to revisit this work. I am floored by what Chris Browne presents here now I have a much more through understanding of the details.
   
   My advice is to BUY BOTH THE BOOK AND AUDIO-CD. Play the audio cd in your car or I-POD a few times to get the general idea. From there, take the text and follow the CD; highlight any ideas that grab you attention as well as any tips/techniques that he gives (particularly at the end of the book). You may not want to delve into the chapters on reading foreign financial statements--a little advanced for the beginner, I assure you!
   
   One you have a good understanding--get started. As I write this (02/2008), there are an abundance of good values in the market. I'm currently investigating a couple of wonder-investments as we speak. I argue this: anyone thinking of buying this book should buy it ASAP! As Chis Browne would say, there are too many stocks on sale....."...and you want to buy stocks when they are on sale".



2. The author states that over a long period of time value companies have outperformed the growth companies. You buy a value company when you pay less its intrinsic value (Buy Stocks On Sale). The key aspect of value investing is an ability to analyze financial statements of the company. The author explains, in the very friendly manner, such indicators of an intrinsic value like Operating Income, Current Assets vs Total Assets (and liabilities), Operating Margin, EBITD Margin, "Margin of Safety" and so on.
   
   The author declares that you can reduce the risk of loss in case of one stock's failure by building a diversified portfolio. However, when it comes to emerging markets, the authors suggest bewaring of them because of the frequent political disasters in particular countries. I do not agree with the author's advice of totally avoiding emerging markets. As an ETF of U.S. stocks like SPDR Trust (SPY) saves from one company's failure, an ETF that includes most of emerging countries, like iShares MSCI Emerging Markets Index (EEF) can save from a failure in one of the countries. Alternatively, you can build a portfolio of stocks in different emerging countries (as if you do this for U.S. stocks) by yourself without using an ETF or an index mutual fund.
   
   The author also proclaims that cognitive psychology explains why some investors make huge losses because of fear, panic, or following the crowd when it comes to hot sexy stocks. If you like the topic of how cognitive psychology affects investors, I can recommend "The Only Three Questions That Count: Investing by Knowing What Others Don't" by Kenneth L. Fisher.



3. Great book as an introduction to the principles of value investing as laid out by Benjamin Graham. Very easy to read. With about 140 pages, you can get through this book in a couple of hours.
   
   I'd use this as a warm up book to Intelligent Investor.



4. I learned from a broad range of investing books, and I got this one primarily because it was a short book. I'm only about half way through it, but I think it is very well written. It has some important information on how to approach researching a company. One of the glaring failures is how rapidly the trading environment can change. The book specifically tells investors to avoid China, and I've been making a lot of money investing in my first Chinese company. Read and learn, but ultimately decide for yourself on what you want to buy.



5. This a very clear and concise book--another one, all of which seem lately to contain the same wisdom: buy low (and buy smart). I'm trying. You can still pay too much, or buy too soon, or catch the wrong end of a falling knife, etc. But it's certainly a far better idea than taking hot tips from e-mails, or from brokers.

5 comments about Value Investing: From Graham to Buffett and Beyond (Wiley Finance).

1. Fantastic summary of modern value investing. Greenwald looks at the discipline with the critical eye of a professor, making it more informative than many other books about the subject. Even seasoned value investors will learn from this book.



2. The authors announce their intention to bravely go "beyond" Graham and Buffet. I found their effort extraordinarily interesting. Not because it brings new ideas from the frontiers of Value Investing; but rather because it forced me to revalidate old ones.
   
   Written mainly by academics, the book attempts - with undeniable clarity - to provide a simple framework for valuation of a firm using Value Investment principles. First, three sources of value are defined: Asset Value; Earnings Power Value; and Value of Growth. Second, some conceptual tricks are employed to link them in a theoretical structure capable of supporting hours of animated tutorial discussion.
   
   The importance of Asset Value in the scheme derives from the idea that if a firm that has no defenses against competitors it is worth no more, or less, than the replacement value of the assets necessary to set up a similar business.
   
   To illustrate, imagine a defenseless firm that is worth 2x on the stockmarket while its productive assets are worth only 1x. Attracted by the absence of barriers to entry and by the high market value achievable with a substantially lower investment, enterprising businessmen set up similar businesses.
   
   As the new capacity comes on stream the market is inundated with products of the same type and prices and profits consequently fall. The process only ends when the market value of all the firms has fallen to the value of their assets, thus eliminating the differential that attracted new market entrants in the first place.
   
   For this to happen we must have an idealized market of perfect competition: lots of buyers and sellers, undifferentiated products, no barriers to entry, perfect information, etc. In practice, however, a dozen firms with similar assets will generate a dozen different levels of profit. And in the end, as the book admits, it is profit expectations, not assets, that determine the value of an on-going business.
   
   I wondered if Graham and his associates ever subscribed to this concept. In my 5th edition of "Security Analysis" I found the ambiguous comment: "ECONOMISTS believe that high returns on capital attract competition which ultimately forces down the rate of profit" (my capitalization). This same edition affirms that it is "The earning power of the assets in use (that) determines their investment value" (rather than the replacement value of these assets). I could find no evidence that the notion formed a key part of the valuation process described in the value-investing classic.
   
   Moving on, We are told that the major difference between Earnings Power Value and Value of Growth, when used to estimate intrinsic value, is the confidence we can place on the result. It is notable, however, that both definitions of value exist in the same continuum. To calculate Earnings Power Value we can simply assume growth to be zero in the traditional Discounted Cashflow formula for estimating intrinsic value.
   
   Beyond a certain point it is reasonable to suppose that the degree of confidence we can put on an intrinsic value calculation falls with the size of profit growth projected. How much faith would we have in a value based on a growth projection of 30% per annum, for example? But why should zero growth produce an intrinsic value closer to the truth than 5% per annum? Is one really inherently safer than the other? What about the risk of deceleration in the case of an assumption of zero growth? Conservatism does not mean ignoring reality.
   
   Once again it all seems part of a jolly academic game. The questionable differentiation between Earnings Power Value and Value of Growth allows the authors to find a role for another element: the franchise - the defenses the firm possesses against competition. They thus arrive at a tidy little conceptual framework. If a firm has no franchise then its intrinsic value is represented by its Asset Value. If the franchise is weak then we base our estimate on its Earnings Power Value. And if it has a rock-solid franchise we might just be able to introduce the Value of Growth. Does all this have any useful meaning in the real world?
   
   Aside from these conceptual questions I found the book exceptionally practical in describing the details of how to value the assets and evaluate the franchise of a firm. On the other hand I found the profiles of eight value investors rather tedious.



3. While reading Graham himself is invaluable, this book is an excellent contribution to the field of value investing in its own right, and brings modern techniques that have been employed in this field for finding value. In addition, the author does an excellent job at qualifying Graham's valuation techniques over DCF valuation. Value investors do not disagree with DCF in principle, but its reliability, based on countless assumptions may not produce consistent results that align a firm's current reality and strategy with its intrinsic value. The latter part of the book discusses techniques of well known value investors and innovations to the field that they have brought to the table. Gabelli's private market value and control premium concept, as well as Seth Klarman's theme of looking for forced sellers are some of the highlights in this section.



4. I got this book from Amazon several years ago, have read it several times and applied it to my own investing. It is not for beginners, but does not require a Phd either. The authors present a rational philosophy and a unique, detailed method that will help you to really estimate the intrinsic value of a share of stock, and then they walk you through actual examples. The writing is interesting, concise, well organized, and clear. The book provides a backgroud of traditional value investing methods, and then introduces a model which builds upon and advances the body of value investing knowledge. I have read many books on value investing, and this is probably the best. Some of the material is difficult, but even if you don't get everything you will still profit from the book and find it interesting and thought provoking. The second half of the book, from Chapter 9 to the end, profiles various professional value investors, their philosophies and methods. This part of the book was probably included mostly to provide filler, but it is easy reading and contains some useful information.



5. This book is not about value investing, it is about modern security analysis, which is exactly what Graham warned against. It places an emphasis on growth over actual value. One of Graham's fundamental principles was that future growth is completely unreliable and any analysis based on it is just a speculator's way of justifying his gamble. While I liked the book's coverage on franchises and competitive advantage it highlights the fact that fundamentals weren't discussed at all.
   
   Here is the biggest example of why this book is so far off the mark. It highlights Intel as a value investment. The stock currently has a P/E of 25x and has always been over priced from a valuation standpoint. Not only that but Intel's only possible competitive advantage is size. Yes modern value investors look for good companies with long term competitive advantage but not at a high cost. Buffett was famous for sitting out the dotcom boom because they were not value investments.
   
   The only reason this book was not a one star book were the biographies of value investors in the second half of the book.

5 comments about Security Analysis: The Classic 1951 Edition.

1. I had to put this book down after skipping pages, sections, chapters, etc due to the academic writing style (way too wordy) and the vague examples/formulas. Like another reviewer I'd suggest that someone take all of the information in this book and boil it down to something easily readable with concrete examples. I've read tons of investing and educational texts and was bored to tears with this one but gave it 3 stars as I think there are some good nuggets buried in it. My most recent investing book was Rule #1 and it seemed like a very simplied version but an easy, understandable read, so maybe I'll wait for the Cliff Notes ;) I'm a trader/investor and don't need one on my shelf to "appear" smart...anyone want to buy my copy of this book?!



2. This is the a must read for any investors. It is, however, quite difficult for beginners to comprehend, though. At least I didn't understand it quite well until after I took Corporate Finance, Accounting, etc... and studied for my CFA exam.
   
   I'd recommend beginners read Graham's "The Intelligent Investor", which help create a concrete basis of your investment philosophy.



3. While the fly on this text touts the fact that this edition is photocopied from the original text, the process did not work. The text copy is fuzzy and blurred making it hard to read. This process was not disclosed in the Amazon summaries available for purchase decision which I find troubling. I would not recommend this text.



4. You will learn and understand important factors to consider during your investment process. I like this wondeful classic book.



5. This is a classic and one of the best books on investing ever. It is a large book and a lot to handle for most people but it is done in a way that almost everyone should be able to understand what the author is saying. An excellent book on explaining how to value a company and getting you to think about the value of cash flow in terms of current dollars. Most of the time when people put money some place they do not really understand the return vs. risk concept. maybe this book will help with that.

5 comments about The Interpretation of Financial Statements.

1. What this book is:
   
   The 1936 edition of "The Interpretation of Financial Statements" by Benjamin Graham, the father of the modern academic discipline of financial analysis. In brief chapters with examples, Graham explains different entries you might find on a corporation's public balance sheet, how those assets and liabilities (debits and credits) add up, and what the meaning is with regard to that corporation's financial health. There are occasional glimpses of average figures by industry, but given that they were compiled in 1935, they are more interesting as a glimpse into the past - some things have changed, much more has remained the same.
   
   What this book is not:
   
   1. It's not a primer on double-entry accounting. If you really don't know anything about double-entry bookkeeping, you'll find the book rough going, as basic familiarity is assumed.
   
   2. It's not an editorial. There's remarkably little opinion given about how to value companies based on their balance sheet entries. That task is performed in the author's mammoth magnum opus, Security Analysis (I prefer the 1940 edition). This book does function admirably as a tableside glossary to that work.
   
   3. It won't tell you how to get rich by investing. Readers looking for get-rich-quick guides should look elsewhere.
   
   4. GAAP- or SOAP-compliant. Both Generally Accepted Accounting Principles and Sarbanes-Oxley postdated the publication of this book by many years.
   
   I enjoyed this book and found it a pleasant, intelligent and necessary introduction to Graham's Security Analysis. If you have interest in learning about the history of financial analysis, you will probably find this book of interest as well.



2. The book's content doesn't give any valuable information at all. What's inside can be found on most other financial and investment books. Furthermore, the cost is way way too high. I feel ripped off!
   
   My worst buy at the moment!!



3. Each portion of a financial statement is described in this book. it is more of a reference to go back to rather than a book to read through. It is very detailed.



4. Yes it is a classic but it is also old and outdated - this is what you are buying when you buy this book. A new book entitle Warren Buffett and the Interpretation of Financial Statements is far more timely book.



5. A short, concise explanation of financial statements by one of the all-time great investors/teachers - Ben Graham. A bit dated today but much of it is still relevant. Since Graham occasionally assumes a knowledge of investing which may be somewhat beyond the novice investor, HOWEVER, if you can't follow the book you're NOT ready to begin investing (go back and get a simpler text until you can understand ALL of this short work - THEN you're ready to put good money at hazard in the Financial Markets).

5 comments about The Intelligent Investor: The Classic Text on Value Investing.

1. I am a brazilian investor and this classic text helped me the change my attitude when the subject is the capital market.



2. If you are not a better investor after reading the first 2 chapters, you'd better give your money to someone else to invest for you. I will never be a speculator again. No wonder Warren is so filthy rich. This is the man he learned from.



3. This book is hailed, and with strong reason, as one of the cornerstone pieces of investment literature. The ideas surrounding valuation and the like are as valid now as they were when the pen first touched this masterpiece.
   
   It is not one of those over-hyped, over-produced get rich quick in the stock market type pieces, but rather a solidified educational fundamental foundation to theory of value investing.
   
   A warning to the novice: This book is written in a very technical language that will be hard to grasp without an understanding of the market in general. This should not be a first investment book, but rather a compliment to your growing collection.



4. Since reading Graham, I keep running into his name everywhere -- and for good reason. Graham (and his disciple Warren Buffet) does not talk about -- or believe in -- get-rich-quick schemes (those are speculation), but in sound principles of looking for solid, well-run companies, and buying their stock when the price dips. (The market gets hysterical and goes up or down in ways that have nothing to do with the intrinsic value of the company.) If other people are foolish enough to sell off a good company at a bargain price, there's nothing wrong with being smart enough to go against the market and buy a bargain. If you want to invest but don't know how to do it intelligently, read Ben Graham for starters.



5. This is a great book for a beginner. covers a lot of the basics, some of the stuff may be outdated but the fundamentals do not seem to have changed.

5 comments about The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition).

1. I have been reading the intelligent investor for a couple of days now and just finished chapter 4. The book can seem a bit long but it is not. The arguments are easy to understand and comprehend. Graham argues that investment, as great as it could be, also contains significant risks and for long periods of times have not outperformed bonds when considering inflation. He thinks every intelligent person should have no more that 75% in equities in best of times and should have up to 75% in bonds in bad times. It is definitely a book worth reading not only because he reaches sensible conclusions and warns you not to blindly follow pundits but simply because it gives you overview on market performance by analyzing the historical data that should be mandatory knowledge for everyone serious about investing.



2. Having being for some time a small investor with mixed results I was trying to learn more about the dynamics of the stock market. Benjamim Graham makes an excellent case for value investing which distinguishes true investors from speculators. It is as actual today (if not more then) as it was first written several decades ago. If you only read one book about stocks, be sure you pick this one. Highly recommended!



3. Whether you are an investor or speculator, this book provides more detailed information than any book I have read. To get the most from this book, one must be willing to devote time to absorb what the author is writing about. As it is a rather large book, it is easy to put aside; however if one is serious about the "market" the vital information is available in this book. I firmly believe if one will read and understand this information, your financial program will benefit. Sam Harris



4. Simple like that: if you are a layman investor and don't want to lose a dime, stop your investment actions right now and start reading this book immediately.
   
   I've started composing my stock portfolio a couple of months, before reading this book. At that time, I didn't know any of the Graham's wise lessons and took many decisions, some Graham-complying ones and some not. After six months, all bets on companies in a strong financial position, with a dividend payment history of more than 20 years, offering shares with a discount as consequence of the market fluctuation, and so on, proved to be right, even during crisis time.
   
   A must read book for anyone aspiring to be a fraction of what a true investor is.



5. The Intelligent Investor has helped me focus on the long term, to really internalize what sort of returns I should expect from my stock and bond investments and to temper my enthusiasm when the market gets exciting. Graham writes clearly, uses examples that are easily understood, and makes his points in an understated style. Though a bit dated -- Ben Graham met his greater reward more than thirty years ago and Jason Zweig focuses his commentary on the internet bubble and its aftermath -- the lessons set forth remain critical to value investing today. Just buy and read (and re-read) this book!