· Recommendation: Warren Buffett
· Recommendation: A Living Textbook of Modern Investment_Hong Jin-chae
· Praise for the 7th Edition of Security Analysis
· Introduction to this book
· 《Securities Analysis》 edition
Translator's Note: A timeless classic that captures the rise and fall of the stock market over the past 100 years_Park Seong-jin
· Preface to the Seventh Edition: The Timeless Wisdom of Graham and Dodd_Seth Klarman
· Preface to the Second Edition
· Preface to the First Edition
Introduction to the 7th Edition: The Historical Background of Graham and Security Analysis_James Grant
· Introduction to Investment Policy, Second Edition

Part 1: Research and Analysis Techniques

Part 1: Introduction: Benjamin Graham: The Birth of Value Investing and Modern Finance_Roger Lowenstein
Chapter 1 Scope and Limitations of Securities Analysis.
The concept of intrinsic value
Chapter 2: Key Elements of the Analysis Problem.
Quantitative and qualitative factors
Chapter 3 Sources of Information
Chapter 4: Distinction between Investment and Speculation
Chapter 5 Classification of Securities

Part 2 Fixed Income Investments

Part II Introduction: Unleashing the Bond Shackles_Howard Marks
Chapter 6: Fixed-Income Securities Selection Principles 1
Chapter 7 Fixed-Income Securities Selection Principles 2 and 3
Chapter 8: Specific Criteria for Bond Investment 1
Chapter 9: Specific Criteria for Bond Investment 2 (Refer to online materials)
Chapter 10: Specific Criteria for Bond Investments 3
Chapter 11: Specific Criteria for Bond Investment 4 (Refer to online materials)
Chapter 12: Special Elements of Railroad and Utility Bond Analysis (See Online Resources)
Chapter 13: Other Special Elements of Bond Analysis (See Online Resources)
Chapter 14 Preferred Stock Theory (see online resources)
Chapter 15 Preferred Stock Selection Techniques
Chapter 16 Profitable Bonds and Guaranteed Bonds
Chapter 17 Guaranteed Bonds 2
Chapter 18: Protection Provisions and Relief for Holders of Senior Securities
Chapter 19 Protection Clause 2
Chapter 20 Preferred Stock Protection Provisions.
Maintaining subordinated capital (see online resources)
Chapter 21: Checking Stock Holdings

Part 3 Speculative Senior Securities

Part 3: Introduction: Investing in Distressed Debt - Dominique Miel
Chapter 22 Privileged Securities
Chapter 23 Technical Characteristics of Privileged Securities
Chapter 24 Technical Characteristics of Convertible Securities
Chapter 25. Securities with warrants.
Profit-participating securities.
Conversion and Hedging (see online resources)
Chapter 26: Senior Securities with Low Safety

Part 4: Common Stock Investment Theory.
Dividend factor

Part 4: Introduction: Research and Analysis for Value Investing_Todd Combs
Chapter 27: Common Stock Investment Theory
Chapter 28: New Principles of Common Stock Investment
Chapter 29: Dividend Elements in Common Stock Analysis
Chapter 30: Stock Dividends (see online resources)

Part 5: Analysis of the Income Statement.
Profit factors in common stock valuation

Part 5 Introduction 1: The Evolution of Value Investing_Stephen Romick
Part 5 Introduction 2: Partner with Owner-Managers_Benjamin Stein and Zachary Sternberg
Chapter 31: Income Statement Analysis
Chapter 32 Extraordinary Losses and Other Extraordinary Items in the Income Statement
Chapter 33: The Cunning Trick of Falsifying the Income Statement.
Subsidiary profits
Chapter 34: The Relationship Between Depreciation, etc. and Profitability
Chapter 35 Depreciation Policy for Public Interest Corporations (see online resources)
Chapter 36: Amortization Expenses from an Investor's Perspective (See Online Resources)
Chapter 37: The Importance of Profit Performance
Chapter 38: Why You Should Be Questioning Past Performance
Chapter 39: Price-earnings ratio of common stock.
Capital change adjustment
Chapter 40 Capital Structure
Chapter 41 Low-Price Common Stock.
Revenue Source Analysis

Part 6: Analysis of the financial statements.
The meaning of asset value

Part 6: Introduction: The Usefulness of Balance Sheet Analysis_Seth Klarman
Chapter 42: Analysis of the Financial Statements.
The importance of book value
Chapter 43: The Importance of Current Asset Value
Chapter 44. The Meaning of Liquidation Value.
Shareholder-Management Relationship
Chapter 45: Financial Statement Analysis (Conclusion)

Part 7 Other Aspects of Securities Analysis.
The gap between price and value

Part 7: Introduction: Markets Are Still Inefficient_Nancy Zimmerman
Chapter 46 Stock-Option Warrants (see online resources)
Chapter 47 Financial and Operating Costs
Chapter 48: Pyramid-style Corporate Finance
Chapter 49 Comparative Analysis of Similar Companies
Chapter 50: The Price-Value Gap 1
Chapter 51: The Price-Value Gap 2
Chapter 52 Market Analysis and Securities Analysis

Part 8: Modern Concepts of Value Investing

Global Investments_William Dummell, Ashish Pant, Jason Moment
Investing in Private Companies: A Case Study by David Abrams
Fund Management Principles and Case Studies_Seth Alexander

· Appendix (see online materials)
· Introduction to the 7th Edition: About the 7th Edition of Security Analysis_Seth Klarman
· Acknowledgements
· Introduction of the commentator
· About the Translator

Why do so many successful investors call "Security Analysis" the best investment book ever?
Graham and Dodd's timeless wisdom remains relevant today!

“Investment management is about ensuring the safety of principal and satisfactory returns based on thorough analysis.
Any operation that does not meet these requirements is speculation.”

“People who habitually buy stocks with a price-to-earnings ratio of 20 or more are likely to lose a lot of money in the long run.”

“We’ve come to the long-held principle that you have to wait until the economy is down and the stock market is down to buy blue-chip stocks.
“If not now, you will buy at a high price and regret it later.”

“Attractive investment conditions for novice investors: No matter how good the conditions are, we don't invest in companies with low ratings.”

“Since safety depends entirely on the debtor’s ability to repay, its ability to repay must be measured.”

These tips are part of the principles of value investing that Benjamin Graham and David Dodd passed on to future generations of investors through their book, Security Analysis.
Although Security Analysis was published 90 years ago, the teachings Graham and Dodd left behind are still surprisingly relevant today.
The margin of safety, intrinsic value, and the distinction between investing and speculating that they spoke of are compasses that still work for today's investors.

Of course, the world has changed a lot.
In the past, corporate value came from tangible assets like factories and railroads, but now intangible assets like people, intellectual property, brands, and network effects are key.
Digital-era companies are creating new revenue models with rapid scalability and low cost structures.
But that doesn't mean the principles change.
The lesson of coldly evaluating a company's profitability and investing only when it's priced well below its intrinsic value remains the starting point for successful investing.

The answer is clear in this regard, given the recent investment boom.
Meme stocks are nothing more than speculative investments driven by social media crazes, and SPAC stocks are impossible to analyze until the merger.
Private equity funds generate profits thanks to high leverage, but rising interest rates can actually be detrimental.
So, this is what Graham would say to investors today:
“Look at the intrinsic value.
Beware of leverage.
“Avoid what you can’t analyze.” This is precisely why Security Analysis is still read across generations.

Warren Buffett said of "Security Analysis" that it was "the book that changed my life," and he made the distinction between investment and speculation, which requires thorough analysis to secure safety of principal and satisfactory returns, his lifelong philosophy.
Seth Klarman placed the principle of "Margin of Safety," which is the core of this book, at the center of his investment philosophy, and even titled his book "Margin of Safety."
Howard Marks believes that opportunities arise from the gap between intrinsic value and market price, which is in line with the insight into market inefficiency that was early emphasized in Security Analysis.
Todd Combs of Berkshire Hathaway, known as the "Young Buffett," also read it several times and used it as a textbook for his investment attitude and analytical training.
The advantage that these experts commonly point out is that "Security Analysis" is not just a book on simple techniques, but a book that fundamentally changes investors' mindset and attitude.

Published 90 years ago, it goes beyond the turmoil of the 20th-century American stock market.
The history of "Securities Analysis," which has evolved into a textbook on value investing!

《Security Analysis》 was first published in 1934 and has since been revised and published several times, reflecting the development of value investing theory and changes in the financial environment.

· The first edition (1934) can be called 'an investment book born in the chaos of great prosperity and great crash.'
It was a time of unprecedented upheaval, with the United States and the world falling into the Great Depression.
From its peak in 1929 to its low in 1932, the Dow Jones Industrial Average plummeted nearly 90 percent over a three-year period, and Graham himself suffered a massive loss of -70 percent of his assets.
However, he was not pessimistic. Rather, he analyzed the intrinsic value of stocks and bonds in uncertain market conditions and first proposed the concept of a 'margin of safety.'
In this way, the first edition is a historical version that systematizes the principles of value investing.


· 1940, when the second edition was published, was the height of World War II.
Graham and Dodd were concerned about the growing uncertainty in the aftermath of the war, but they did not change the fundamentals of their analysis.
Rather, it strengthens the theoretical framework of value investing by addressing some of the weaknesses of the first edition, such as expanding the analysis of bonds and preferred stocks and refining corporate analysis techniques.
That's why many investors, including Warren Buffett, consider this version to be the 'original version.'

· From mid-1949 to early 1966, the U.S. stock market experienced its greatest golden age since the Great Depression, with the Dow Jones Industrial Average rising nearly sixfold.
The third edition, published in 1951 at the beginning of this bull market, recommended that the authors focus more on sound, income-generating common stocks than on currency, given the inevitable post-war inflation.
This third edition is the last edition written directly by Graham and Dodd.


· The fourth edition (revised in 1962) was co-authored by Graham, Dodd, and Sidney Cottle, former director of finance at the Stanford Research Institute.
This is an expanded version that covers trends and growth stocks.
The 1960s were an era of growth.
Mutual funds were flooding in, and investors aggressively invested in growth stocks in pursuit of short-term, high returns.
Even experts considered fundamental analysis of a company meaningless and assessed its value solely based on earnings trends.
Only Graham and a young Warren Buffett were pessimistic about the situation.


· The 5th edition (revised in 1988) was published after Graham's death.
Sidney Cottle is the chief editor, and economist Roger Murray and investment researcher Frank E.
Block) supplemented the content.
Includes a foreword by Warren Buffett.
After Black Monday in 1987, investors fled the market, and cheap stocks began to flood in again.
The market, which had been in a sideways trend for a long time, entered another long bull market from mid-1982 until the dot-com bubble burst in early 2000.

· The 6th edition (revised in 2009) was edited by Seth Klarman, and 11 later value investors, including Howard Marks, used the 2nd edition as the basic text, adding commentary to suit the financial environment of the early 21st century.
Immediately after publication.
The financial crisis caused by the 'subprime mortgage crisis' caused a serious recession in the market.

· This 7th edition (revised in 2023) is a revised edition published 14 years after the 6th edition, and is based on the 2nd edition from 1940, with commentary on the original text and a modern perspective.
After the financial crisis, the market enjoyed a boom for 11 years thanks to various government interventions.
But major events like the pandemic, inflation, and Russia's invasion of Ukraine have increased uncertainty.
The 7th edition presents a method for applying Graham and Dodd's principles to the modern investment environment amidst these recent economic and social changes.
To this end, renowned value investors such as James Grant, Roger Lowenstein, and Howard Marks participated as commentators and added their own insights.
Part 8, in particular, sheds new light on the principles of strategy and opportunities in the global market, investment in unlisted companies, and fund management, focusing on the topic of "Modern Concepts of Value Investing."

7th Edition Commentator

Seth A. Klarman
Klarman): Senior Editor of the 7th Edition.
CEO and Portfolio Manager of The Baupost Group, LLC.
Since 1983, we have been successfully operating several investment funds using value investing principles.
He is also the author of the value investing classic, Margin of Safety.

James Grant: [Grant's Interest Rate Observer]
Founder and editor, he has been writing about markets and finance for half a century.
He was co-editor of the 6th edition of Security Analysis.

Roger Lowenstein: A leading American financial writer, he has written books on economic history and finance.
He is the author of the bestsellers Warren Buffett and The Greatest Money Maker.

Howard S. Marks
Marks): Founder and Chairman of Oaktree Capital Management, LP.
He invested in high-yield bonds early on and is an avid follower of Graham and Dodd.

Dominique Mielle: He served as a partner and portfolio manager at a large hedge fund focused on investing in distressed debt. He played a key role in complex bankruptcies, including those of PG&E, Puerto Rico, and a major U.S. airline.
In 2017, she was included in the "50 Leading Women in Hedge Funds" list by The Hedge Fund Journal and Ernst & Young.


Todd A. Combs
Combs) : Chairman and CEO of Geico and chief investment officer of Berkshire Hathaway.
He has also been a director at JP Morgan Chase since 2016.

Steven Romick: Partner at First Pacific Advisors, a value investing investment partnership.
Morningstar awarded him the 2013 "U.S. Asset Allocation Fund Manager of the Year" award for his FPA Crescent Fund, which he managed, for having the highest risk-adjusted return among mutual funds.

Zachary S. Sternberg
Sternberg), Benjamin F. Stein
Stein): The two founded Spruce House Partnership together in New York in 2005, when they were sophomores at the University of Pennsylvania.
Did.
This investment fund makes long-term investments in listed and unlisted companies managed by their owners.

Nancy Zimmerman: Co-founder and partner at Bracebridge Capital, a Boston-based hedge fund that pursues absolute returns.


William Duhamel, Jason E.
Moment), Ashish Pant: Route One Investment Company, LP, founded in 2010
They are representatives.
Root One invests globally using a value investing approach.


David Abrams: He is the CEO of Abrams Capital Management, a hedge fund founded in Boston in 1999.

Seth Alexander: President of MIT Investment Management Company (MITIMCo), a division of MIT. He manages MIT's financial assets, including its endowment, retirement pension, and retiree benefit funds.