Table of Contents

Foreword • by Warren E. Buffett

Preface to the Sixth Edition | The Timeless Wisdom of Graham and Dodd
by Seth A. Klarman
PREFACE TO THE SECOND EDITION
PREFACE TO THE FIRST EDITION

Introduction to the Sixth Edition | Benjamin Graham and Security
Analysis: The Historical Backdrop • by James Grant
INTRODUCTION TO THE SECOND EDITION

PART I
SURVEY AND APPROACH
Introduction to Part I | The Essential Lessons• by Roger Lowenstein

Graham and Dodd chapters:
1. THE SCOPE AND LIMITS OF SECURITY ANALYSIS. THE CONCEPT OF INTRINSIC VALUE
2. FUNDAMENTAL ELEMENTS IN THE PROBLEM OF ANALYSIS. QUANTITATIVE AND QUALITATIVE FACTORS
3. SOURCES OF INFORMATION
4. DISTINCTIONS BETWEEN INVESTMENT AND SPECULATION
5. CLASSIFICATION OF SECURITIES

PART II
FIXED-VALUE INVESTMENTS
Introduction to Part II | Unshackling Bonds • by Howard S. Marks

Graham and Dodd chapters:
6. THE SELECTION OF FIXED-VALUE INVESTMENTS
7. THE SELECTION OF FIXED-VALUE INVESTMENTS: SECOND AND THIRD PRINCIPLES
8. SPECIFIC STANDARDS FOR BOND INVESTMENT
9. SPECIFIC STANDARDS FOR BOND INVESTMENT (CONTINUED) see accompanying CD
10. SPECIFIC STANDARDS FOR BOND INVESTMENT (CONTINUED)
11. SPECIFIC STANDARDS FOR BOND INVESTMENT (CONTINUED) see accompanying CD
12. SPECIAL FACTORS IN THE ANALYSIS OF RAILROAD AND PUBLIC-UTILITY BONDS see accompanying CD
13. OTHER SPECIAL FACTORS IN BOND ANALYSIS see accompanying CD
14. THE THEORY OF PREFERRED STOCKS see accompanying CD
15. TECHNIQUE OF SELECTING PREFERRED STOCKS FOR INVESTMENT
16. INCOME BONDS AND GUARANTEED SECURITIES
17. GUARANTEED SECURITIES (CONTINUED)
18. PROTECTIVE COVENANTS AND REMEDIES OF SENIOR SECURITY HOLDERS
19. PROTECTIVE COVENANTS (CONTINUED)
20. PREFERRED-STOCK PROTECTIVE PROVISIONS. MAINTENANCE OF JUNIOR CAPITAL see accompanying CD
21. SUPERVISION OF INVESTMENT HOLDINGS

PART III
SENIOR SECURITIES WITH SPECULATIVE FEATURES
Introduction to Part III | “Blood and Judgement” • by J. Ezra Merkin

Graham and Dodd chapters:
22. PRIVILEGED ISSUES
23. TECHNICAL CHARACTERISTICS OF PRIVILEGED SENIOR SECURITIES
24. TECHNICAL ASPECTS OF CONVERTIBLE ISSUES
25. SENIOR SECURITIES WITHWARRANTS. PARTICIPATING ISSUES. SWITCHING AND HEDGING see accompanying CD
26. SENIOR SECURITIES OF QUESTIONABLE SAFETY

PART IV
THEORY OF COMMON-STOCK INVESTMENT. THE DIVIDEND FACTOR
Introduction to Part IV | Go with the Flow • by Bruce Berkowitz

Graham and Dodd chapters:
27. THE THEORY OF COMMON-STOCK INVESTMENT 348
28. NEWER CANONS OF COMMON-STOCK INVESTMENT 366
29. THE DIVIDEND FACTOR IN COMMON-STOCK ANALYSIS 376
30. STOCK DIVIDENDS see accompanying CD

PART V
ANALYSIS OF THE INCOME ACCOUNT. THE EARNINGS
FACTOR IN COMMON-STOCK VALUATION
Introduction to Part V | The Quest for Rational Investing• by Glenn H. Greenberg

Graham and Dodd chapters:
31. ANALYSIS OF THE INCOME ACCOUNT
32. EXTRAORDINARY LOSSES AND OTHER SPECIAL ITEMS IN THE INCOME ACCOUNT
33. MISLEADING ARTIFICES IN THE INCOME ACCOUNT. EARNINGS OF SUBSIDIARIES
34. THE RELATION OF DEPRECIATION AND SIMILAR CHARGES TO EARNING POWER
35. PUBLIC-UTILITY DEPRECIATION POLICIES see accompanying CD
36. AMORTIZATION CHARGES FROM THE INVESTOR’S STANDPOINT see accompanying CD
37. SIGNIFICANCE OF THE EARNINGS RECORD
38. SPECIFIC REASONS FOR QUESTIONING OR REJECTING THE PAST RECORD
39. PRICE-EARNINGS RATIOS FOR COMMON STOCKS. ADJUSTMENTS FOR CHANGES IN CAPITALIZATION
40. CAPITALIZATION STRUCTURE
41. LOW-PRICED COMMON STOCKS. ANALYSIS OF THE SOURCE OF INCOME

PART VI
BALANCE-SHEET ANALYSIS. IMPLICATIONS OF ASSET VALUES
Introduction to Part VI | Deconstructing the Balance Sheet • by Bruce Greenwald

Graham and Dodd chapters:
42. BALANCE-SHEET ANALYSIS. SIGNIFICANCE OF BOOK VALUE
43. SIGNIFICANCE OF THE CURRENT-ASSET VALUE
44. IMPLICATIONS OF LIQUIDATING VALUE. STOCKHOLDER-MANAGEMENT RELATIONSHIPS
45. BALANCE-SHEET ANALYSIS (CONCLUDED)

PART VII
ADDITIONAL ASPECTS OF SECURITY ANALYSIS.
DISCREPANCIES BETWEEN PRICE AND VALUE
Introduction to Part VII | The Great Illusion of the Stock Market and the Future of Value Investing • by David Abrams

Graham and Dodd chapters:
46. STOCK-OPTIONWARRANTS see accompanying CD
47. COST OF FINANCING AND MANAGEMENT
48. SOME ASPECTS OF CORPORATE PYRAMIDING
49. COMPARATIVE ANALYSIS OF COMPANIES IN THE SAME FIELD
50. DISCREPANCIES BETWEEN PRICE AND VALUE
51. DISCREPANCIES BETWEEN PRICE AND VALUE (CONTINUED)
52. MARKET ANALYSIS AND SECURITY ANALYSIS

PART VIII
GLOBAL VALUE INVESTING
Globetrotting with Graham and Dodd • by Thomas A. Russo

APPENDIX see accompanying CD
About This Edition
Acknowledgments
About the Contributors
About the Authors
Index