Book · 1934 · Business & Economics
Security Analysis: The Classic 1934 Edition
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So, Graham and Dodd in the 1940 edition of security analysis called fixed income investing at negative art. And I think what they meant is that since all 8% bonds, 8%, and if there are 100 bonds of which 90 will pay, it doesn't matter which of the 90 you buy.
The best things said about it
And I think that book is more valuable than, like, I think, like a young investor coming up now will get more from the snowball than from the intelligent investor or security analysis or, you know.
Why people recommend it
Security Analysis by Benjamin Graham and David Le Fevre Dodd is a foundational investment text that establishes the core principles of value investing, fundamental analysis, and the evaluation of corporate securities. On the podcast Invest Like the Best, Howard Marks discussed the book while examining fixed-income investing. Marks noted that in the 1940 edition of Security Analysis, the authors characterized fixed-income investing as a negative art. He explained their reasoning, pointing out that when evaluating a large portfolio of bonds where the vast majority will pay out successfully, the exact choice among the performing subset ultimately becomes irrelevant. Later in the same podcast series, Jeff Gramm also mentioned the work while debating the educational value of various finance books for young investors. Gramm suggested that other titles, such as The Snowball, might offer greater value to a modern beginner than reading the classic pages of Security Analysis or The Intelligent Investor. Despite differing views on its current accessibility for novices, the speakers highlighted the enduring intellectual footprint of Graham and Dodd's classic treatise across generations of financial professionals and market participants.
Every mention
Howard Marks So, Graham and Dodd in the 1940 edition of security analysis called fixed income investing at negative art.… 1
“So, Graham and Dodd in the 1940 edition of security analysis called fixed income investing at negative art. And I think what they meant is that since all 8% bonds, 8%, and if there are 100 bonds of which 90 will pay, it doesn't matter which of the 90 you buy”
Jeff Gramm And I think that book is more valuable than, like, I think, like a young investor coming up now will get mo… 1
“And I think that book is more valuable than, like, I think, like a young investor coming up now will get more from the snowball than from the intelligent investor or security analysis or, you know.”
Other mentions (1: passing, ad reads, own books)
“So what I mean by that is if you were to go back to securities analysis, Ben Graham's work, or even looking more at like Seth Klarman's stuff from margin of safety, a lot of it is you're looking for statistically cheap securities.”