The timeless edition of Security Analysis that most closely reflects today's financial environment Graham and Dodd's Security Analysis is hands-down the most influential investment book in history. The classic 1951 edition is the first edition of the bestselling investment bible that was written during a time of economic stability and prosperity. It provides investors with techniques and strategies for profitable investing in an economic environment that most resembles today. Security Analysis: The Classic 1951 Edition features a far more contemporary focus on the wisdom and legitimacy of common stocks for individual investors. This essential addition to any investment library features: Graham and Dodd's original words and insights, unvarnished and still compelling Timeless methods for measuring asset values and cash flows, still a centerpiece of value investing worldwide Income statements and balance sheets moved to the front of the book for ease of use The book that launched value investing, with guidance and insights that stand the test of time Preface to the Third Edition vii Preface to the First Edition ix PART I SURVEY AND APPROACH Introduction. The Array of Securities. Economic Background 1(12) The Scope and Limitations of Security Analysis 13(10) The Behavior of the Security Markets 23(10) Investment and Speculation 33(14) Investment Policy 47(13) Nature and Sources of the Analyst's Information 60(7) Quantitative and Qualitative Factors in Security Analysis. The Margin-of-safety Concept 67(10) Classification of Securities 77(7) PART II ANALYSIS OF FINANCIAL STATEMENTS Analysis of the Income Account: General Procedure 84(15) Effect of Reserves upon the Income Account 99(11) Inventory Valuations and Inventory Reserves. Contingency Reserves 110(17) The Relation of Depreciation and Similar Charges to Earning Power 127(17) Amortization Charges from the Investor's Viewpoint 144(11) Allowance for Results of Subsidiaries and Affiliates 155(6) Reported Earnings and Taxable Earnings 161(14) Balance-sheet Analysis 175(24) Interpretations of the Financial Data: Per-share Figures and Key Ratios 199(12) A Comparison Based on Key Ratios. Physical Data Used in Analysis 211(10) Analysis of Specific Industries. Railroad Analysis 221(20) Factors in Public-utility Analysis: Introduction 241(16) Factors in Public-utility Analysis: Income-statement Analysis 257(24) PART III FIXED-INCOME SECURITIES The Selection of Fixed-income Securities 281(16) Specific Standards for Bond Investment 297(19) Specific Standards for Bond Investment (Continued) 316(10) Specific Standards for Bond Investment (Continued) 326(13) Additional Factors in Bond Analysis 339(13) Preferred Stocks 352(10) Technique of Selecting Preferred Stocks for Investment 362(10) Income Bonds and Guaranteed Securities 372(13) PART IV THE VALUATION OF COMMON STOCKS The Theory of Common-stock Investment. Historical Survey 385(9) Current Modes of Common-stock Investment 394(10) The Pros and Cons of the Valuation Approach. The Valuation Factors 404(8) Projections of Earnings and Dividends. Significance of the Earnings Record. The Concept of Earning Power 412(18) The Dividend Factor in Common-stock Valuation 430(9) Technical Aspects of the Dividend Rate. Stock Dividends 439(15) The Capitalization Rate for Earnings and Dividends 454(10) Capitalization Structure 464(11) The Asset-value Factor in Common-stock Valuation 475(17) The Valuation of Public-utility Common Stocks 492(15) The Valuation of Public-utility Common Stocks (Continued) 507(14) PART V SENIOR SECURITIES WITH SPECULATIVE FEATURES Privileged Issues 521(9) Technical Characteristics of Privileged Senior Securities 530(11) Participating and Warrant-bearing Issues. Privileged Issues vs. the Related Common Stocks 541(6) Senior Securities of Questionable Safety 547(9) Leverage 556(7) Low-priced Common Stocks. Option Warrants 563(12) PART VI STOCKHOLDERS AND MANAGEMENT General Approach to the Subject. Stockholders and Managerial Efficiency 575(11) Stockholders, Managements, and Dividend Policy 586(13) Stockholders and Their Capital 599(14) Stockholder-Management Controversies 613(8) Regulation by the Securities and Exchange Commission. Recapitalizations and Reorganizations 621(15) PART VII SECURITY ANALYSIS IN ACTION Discrepancies between Price and Value 636(14) Market Analysis and Security Analysis 650(13) Appendix 663(76) Index 739