About Security Analysis
Security analysis Summary is a book written by Benjamin Graham and David Dodd in the year 1934. It is a famous investment book and has been in print continuously ever since its first edition in 1934. Its investment principles have helped many investors. This book is highly suggested for students who are interested to know about financial history and is termed as a bible for all kind of investors. It highly helps to find investments with good returns with a safe principle.
Benefits of Reading Security Analysis Summary and What it teaches
The Security Analysis helps to calculate the value of various assets. Free Security Analysis Summary greatly helps the investors as well as the financial experts to calculate the risk involved in an investment and the value of the assets they have planned to invest. It teaches them how various market fluctuates based on financial instruments. It gives a detailed explanation about the insecurities one can face in an investment and how to face them. The Security Analysis is classified into three analysis namely, fundamental analysis, technical analysis, and quantitative analysis. The book explains in detail how the financial statements are frames in various kinds of financial transactions of a company.
The book teaches its readers about how to create an investment objective for an individual. It teaches and guides how to select an investment plan for an individual, the one that gives them great returns and minimum risks involved. It teaches them how to trade and find the best securities with maximum interest rates. It properly guides the users on which one to focus on and the importance of it. It offers intrinsic and theoretical explanations with portfolio management. The book might look complex and difficult to read to the novice. It teaches them the basics of speculating and investing. It teaches that you must protect your principal first and then look for returns instead of focussing on high returns initially. It is important to evaluate the risk involved too. The quality of the lender must also be taken into consideration. It teaches how to look into the future and estimate what could happen. It teaches that the investors have to be patient but that it is often applied wrong. It not only teaches how to aim and get high returns but also how to face the fear of incurring losses.
Graham presents many accounting methods on how the company actually makes money and is not the same as the net value money in the income statements. He teaches how to read simple accounting statements. It says to pay good attention to the non-recurrent revenue and expenses. It teaches how one must equip with not only reading to understand the bottom line statements but also the separate accounts too. He teaches about EPS. It teaches about how the market condition favors the worst companies as well and how businesses respond to the changes and losses. This 100-page summary book is a good guide from novice to experts while planning for their investment or has an urge to learn about how to invest.