Security Analysis Principles and Techniques 7th

PART I

Survey and Approach

Introduction to Part I | Benjamin Graham—in His Time and Ours

by Roger Lowenstein 41

Graham and Dodd chapters:

1. The Scope and Limitations of Security Analysis. The Concept

of Intrinsic Value 65

2. Fundamental Elements in the Problem of Analysis. Quantitative and

Qualitative Factors 79

3. Sources of Information 93

4. Distinctions Between Investment and Speculation 103

5. Classification of Securities 115

 

Fixed-Value Investments

Introduction to Part II | Unshackling Bonds

by Howard S. Marks 125

Graham and Dodd chapters:

6. The Selection of Fixed-Value Investments 153

7. The Selection of Fixed-Value Investments: Second and Third Principles 166

8. Specific Standards for Bond Investment 181

9. Specific Standards for Bond Investment (Continued) available online

10. Specific Standards for Bond Investment (Continued) 192

11. Specific Standards for Bond Investment (Continued) available online

12. Special Factors in the Analysis of Railroad and Public-Utility Bonds

available online

13. Other Special Factors in Bond Analysis available online

14. The Theory of Preferred Stocks available online

15. Technique of Selecting Preferred Stocks for Investment available online

16. Income Bonds and Guaranteed Securities available online

17. Guaranteed Securities (Continued) 202

18. Protective Covenants and Remedies of Senior Security Holders 216

19. Protective Covenants (Continued) 229

20. Preferred-Stock Protective Provisions. Maintenance of Junior Capital

available online

21. Supervision of Investment Holdings 240

PART III

Senior Securities with Speculative Features

Introduction to Part III | Investing in Distressed Credit

by Dominique Mielle 251

Graham and Dodd chapters:

22. Privileged Issues 267

23. Technical Characteristics of Privileged Senior Securities 277

24. Technical Aspects of Convertible Issues 291

25. Senior Securities with Warrants. Participating Issues. Switching and

Hedging available online

26. Senior Securities of Questionable Safety 301

PART IV

Theory of Common-Stock Investment.

The Dividend Factor

Introduction to Part IV | Finding Value in Common Stocks

by Todd Combs 317

Graham and Dodd chapters:

27. The Theory of Common-Stock Investment 334

28. Newer Canons of Common-Stock Investment 352

29. The Dividend Factor in Common-Stock Analysis 362

30. Stock Dividends available online

PART V

Analysis of the Income Account. The Earnings

Factor in Common-stock Valuation

Introduction to Part V | The Evolution of a Value Investor

by Steven Romick 381

Introduction to Part V | Investing with Owner-Operators

by Benjamin Stein and Zachary Sternberg 401

Graham and Dodd chapters:

31. Analysis of the Income Account 413

32. Extraordinary Losses and Other Special Items in the Income Account 428

33. Misleading Artifices in the Income Account. Earnings of Subsidiaries 439

34. The Relation of Depreciation and Similar Charges to Earning Power 457

35. Public-Utility Depreciation Policies available online

36. Amortization Charges from the Investor’s Standpoint available online

37. Significance of the Earnings Record 476

38. Specific Reasons for Questioning or Rejecting the Past Record 491

39. Price-Earnings Ratios for Common Stocks. Adjustments for

Changes in Capitalization 500

40. Capitalization Structure 511

41. Low-Priced Common Stocks. Analysis of the Source of Income 524

PART VI

Balance-Sheet Analysis. Implications of Asset Values

Introduction to Part VI | The Evolving Utility of Balance Sheet Analysis

by Seth A. Klarman 539

Graham and Dodd chapters:

42. Balance-Sheet Analysis. Significance of Book Value 549

43. Significance of the Current-Asset Value 560

44. Implications of Liquidating Value. Stockholder-Management

Relationships 576

45. Balance-Sheet Analysis (Concluded) 592

PART VII

Additional Aspects of Security Analysis.

Discrepancies Between Price and Value

Introduction to Part VII | The Market Is Still Not Efficient

by Nancy Zimmerman 617

Graham and Dodd chapters:

46. Stock-Option Warrants available online

47. Cost of Financing and Management 633

48. Some Aspects of Corporate Pyramiding 644

49. Comparative Analysis of Companies in the Same Field 654

50. Discrepancies Between Price and Value 669

51. Discrepancies Between Price and Value (Continued) 688

52. Market Analysis and Security Analysis 697

Contemporary Concepts in Value Investing

International Investing

by Bill Duhamel, Ashish Pant, and Jason Moment 713

At the Intersection of Public and Private Investing: A Case Study

by David Abrams 733

Endowment Management Principles and Practice

by Seth Alexander 745

Appendix available online

About This Edition 757

Acknowledgments 763

About the Contributors 765

About the Authors 771

Index 773

CONTENTS xi