July 24, 2022

Security Analysis - Chapter 3

Security Analysis by Benjamin Graham and David Dodd was first published in 1934. It is a fundamental book for serious students of value investing.
In chapter 3, the authors discuss selected information sources that an analyst can use to get facts and figures about the business and industry.

Mr. Graham and Mr. Dodd mention sources to gather facts about the terms of the security and then discuss important information an analyst needs from an Income statement and Balance sheet accounts. The frequency and type of information published by many companies have varied but most listed companies, under SEC rules, provide regular information. Apart from the company's published information, the authors note a few unorthodox sources through which information about the company could be retrieved.

The writers emphasize the use of original sources versus summaries written by other people to analyze the company. As owners of the company, shareholders have the right to ask for information directly from the company.

Chapter 4

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