Foreword by Warren Buffett (Security Analysis Prior Editions)

As other reviewers have pointed out, this (sixth) edition of Security Analysis includes a reprint of the popular 1940 edition (Warren Buffett's favorite), minus some chapters. The deleted chapters, which can be found in the CD that accompanies the book, make room for (new) general introductory remarks to this edition and also to the eight major parts of the book, written by a variety of modern commentators. If all you really want is the 1940 edition, then the better choice for you is probably to buy the currently in-print reprint that's available (for a lower cost that this sixth edition). You could also buy one of the books actually printed back in 1940, but that will set you back big bucks, because original versions of Security Analysis are collectors' items today. For example, a good copy of the first printing of the 1934 edition easily runs into five figures.

Concerning the 1940 edition (or just the 1940 chapters contained in this sixth version), other than for the references to corporate examples from the 1920s or 1930s, the content is amazingly relevant to today's investing. I had read Security Analysis (the fourth edition) many years ago, and I had forgotten just how clear, precise, insightful and truly sophisticated Graham and Dodd were. Remarkably, in many instances this 1940 edition does a better job describing 21st century investing issues than the majority of material written today.

What you get with this sixth edition that's not available in the other editions are a short (two page) foreword by Warren Buffett and 10 essays by some of the most well-regarded modern investors and authors. Indeed, it was an honor to be asked to contribute to the sixth edition. The essays run about 15 pages, on average, and many of them are highly informative and useful. Those written by Seth Klarman, James Grant, Roger Lowenstein and Bruce Berkowitz were my favorites. As good as they are, though, they basically provide useful insights and more modern applications, rather than plow much new intellectual ground. It's hard to improve much on Graham and Dodd, even after 70 years. If that seems hard to believe, read the book and see for yourself. Finally, if you haven't already read the 1940 edition, which book should you buy--a 1940 reprint or this sixth edition? My choice is the sixth edition.

As other reviewers have pointed out, this (sixth) edition of Security Analysis includes a reprint of the popular 1940 edition (Warren Buffett's favorite), minus some chapters. The deleted chapters, which can be found in the CD that accompanies the book, make room for (new) general introductory remarks to this edition and also to the eight major parts of the book, written by a variety of modern commentators. If all you really want is the 1940 edition, then the better choice for you is probably to buy the currently in-print reprint that's available (for a lower cost that this sixth edition). You could also buy one of the books actually printed back in 1940, but that will set you back big bucks, because original versions of Security Analysis are collectors' items today. For example, a good copy of the first printing of the 1934 edition easily runs into five figures.

Concerning the 1940 edition (or just the 1940 chapters contained in this sixth version), other than for the references to corporate examples from the 1920s or 1930s, the content is amazingly relevant to today's investing. I had read Security Analysis (the fourth edition) many years ago, and I had forgotten just how clear, precise, insightful and truly sophisticated Graham and Dodd were. Remarkably, in many instances this 1940 edition does a better job describing 21st century investing issues than the majority of material written today.

What you get with this sixth edition that's not available in the other editions are a short (two page) foreword by Warren Buffett and 10 essays by some of the most well-regarded modern investors and authors. Indeed, it was an honor to be asked to contribute to the sixth edition. The essays run about 15 pages, on average, and many of them are highly informative and useful. Those written by Seth Klarman, James Grant, Roger Lowenstein and Bruce Berkowitz were my favorites. As good as they are, though, they basically provide useful insights and more modern applications, rather than plow much new intellectual ground. It's hard to improve much on Graham and Dodd, even after 70 years. If that seems hard to believe, read the book and see for yourself. Finally, if you haven't already read the 1940 edition, which book should you buy--a 1940 reprint or this sixth edition? My choice is the sixth edition.

Good book. Poor printing. It has more material than the 6th edition, preserving more, therefore showing a more wholesome thought process of these two value investing masters. 1951 is the edited version by Graham and Dodd, and is also used by Mr. Buffet. The earlier ones were closer to the market then. 1951 edition is more close to a more mature market, as it is today. For a detailed, wholesome Thinking book training our mind, go for this one. The 6th edition is not as good as this one.

The most important question is identifying what creates value to shareholders within an industry/business and to figure out how to exploit this value. Is the potential investment exercising this power? Read it and reference it, this will help.

Best Regards

The 2nd edition of Security Analysis was Warren Buffett's textbook when he took Ben Graham's class at Columbia University in 1950-51 time frame. The principals found in this book is what shaped Buffet to become a multi-millionare in his 20's and multi-billionaire today.

This book is very hyped and it is plainly ridiculous that most editions of the book are still in print. The publisher is really ripping us off, because Warren Buffett likes the book.

The content of the book is extremely dated.
1, Financial statement analysis of accounts from the 1940s. At that time companies could decide not to consolidate subsidiaries even if they held more than 50%. Not allowed today. The book is full of these historical curiosities.
2. Overview of the investment options available in the 1940s. Some of this material has been removed and put on an accompanying CD/ROM.

It is nice to have old classic in the bookshelf. However, this is physically a very ugly book. It is too thick, the binding is loose, and the cover imprint feels like 1980 and not 1940. And the fonts are so ugly. Why couldn't the publisher make the book pretty?

This sixth edition is the second edition plus a modern commentary from a bunch of famous value investors. These sections are not very insightful and they certainly are not organised in any coherent manner. Buffett has said that he prefers the second edition. That is why the sixth edition was based on a very old book, and not the latest edition from the 1970s. Hero worship. Do you think Buffett has read all editions and compared them? Fact is that Buffett used the second edition when he studied at Columbia. That is why he liked it. Not very relevant for the rest of us.

Is Graham & Dodd onto something with value investing? Of course they are. I am not for a moment trying to critique their accomplishments. I am only critiquing this book. I would strongly recommend that you pick up The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) from the same author. It skips the details of financial statement analysis, but is much more elaborate on investment philosophy. That book also has a modern running commentary from one editor. This actually adds value, because it is written by one person.

Prediction: The sycophants will give this review negative feedback.