Security Analysis: The Classic 1940 Edition

[Satchmo]

Cool, thanks hyom, will keep that in mind. Shall see if I can find one in the local bookshops or libraries to browse.

Have always wanted to patronise BetterBooks for other books but have dallied till now. Shall see if I can get other finance/investment books on the cheap from this site in the future. 2nd hand doesn't bother me: I raid local 2nd-hand book sales whenever I chance upon them heh.
And as long as they arrive, time isn't a major factor, I got too much reading projects already

[Satchmo]

Would like to ask those who have read the book, did u guys/gals skip the fixed income chapters? I dun think it's as relevant to the common investor locally.

[D123]

Would like to ask those who have read the book, did u guys/gals skip the fixed income chapters? I dun think it's as relevant to the common investor locally.

I think if you have the time and are interested in honing your understanding of companies and their financial statements, the whole book is worth reading.

I read those chapters (I'm assuming you meant Part 2 of the 1940 edition) a few years ago, but can still remember some things that are taught in them that are still relevant. For example, it gives a good perspective with which to view yield - it is emphasizes that yield and risk are incommensurable, and that the acknowledged risks of losing principal cannot be offset merely by a high coupon rate. Another one I like is "to test the safety of principal invested under situations of depression and not prosperity".

Anyway, the examples are not going to be directly relevant - it is written in the 1930s - but the lessons taught are still very much applicable to helping you form an overall value investing framework. If you can understand how investors should appraise bonds, it can only help in understanding how companies should use them as a financing vehicle. You can then apply this to understanding how well companies run their capital structures.

Just my 2 cents.

[Satchmo]

Thanks for ur input, D123. Some of the financing items mentioned in the book are totally new to me, not sure if they still exist in the present.

What i intend to do is to skip the fixed income chapters and come back to them once I've read the rest of the book. Just wondering if I would miss any crucial stuff that way.

[secretinvestors]

There used to be quite a few copies of 2nd hand SA in http://www.betterworldbooks.com/. I bought the 1st edition from there at quite low price.
The next alternative will be www.amazon.com.
But, typically, the price with shipping will be around S$50 at least.

Just wondering.. Why is there such a big price difference between amazon and betterworld books for 1940 edition (amazon is much cheaper)?

[yeokiwi]

Just wondering.. Why is there such a big price difference between amazon and betterworld books for 1940 edition (amazon is much cheaper)?

Betterworld is a used book seller with the goal of recycling used books and promote literacy in developing countries.
In the earlier days,they had quite a few copies of Security analysis donated by libraries and these copies were sold at low price.
All the copies are gone and now they are just selling new copies of security analysis.

[secretinvestors]

A quick look at amazon shows the 1940 edition to be selling at about $35 while that of betterworld books is $55. If im not wrong, both are the new!