|
Indeed, it was an honor to be asked to contribute to 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. 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). My choice is the sixth edition.
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. It's hard to improve much on Graham and Dodd, even after 70 years. As good as they are, though, they basically provide useful insights and more modern applications, rather than plow much new intellectual ground.
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. Those written by Seth Klarman, James Grant, Roger Lowenstein and Bruce Berkowitz were my favorites. 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. The essays run about 15 pages, on average, and many of them are highly informative and useful.
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. 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. 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.
You may not be able to influence politicians to make you money as did Buffet on OHB in 2008, but the market has fundamentals this book teaches.It's not an easy read, but it's an education worthy of the time to finish it. Few times in history are so many buys in the Stock Market there. This is the time to apply the strategies that made Warren Buffet rich.
Now,I'd like to thank to the Amazon,to the customer Services of Amazon.It's useful. Okay.If you are a old customer of Amazon,I think you may have the same thinking of Amazon.If you are a new customer of Amazon,You can believe:you could get the best services and there is no need to be worried about the services of Amazon.In the e-mail,the Amazon told me:They're Building Earth's Most Customer-Centric Company.I think,they really do that. Please Allow me to repeat it again:The customer services of Amazon is Very FRIENDLY AND EFFICIENT,it's PERFECT.
I am a Chinese Customer of Amazon,I've bought many books on the Amazon.com.This time,I bought the book what you saw. Wow.I have never expected such a good customer services.I only told to him my book are destroied,and the standrd way to return this book is so expensive to me.Then,he said to me he has created the replacement order,and I don't need to pay any more money for it.I don't have to return it to Amazon,I can keep, donate or dispose of it--whichever option is most appropriate and convenient for me. Well,when you see this review,maybe you want to know something about this book.But I want to tell you:I don't want to talk about this book,Although this is a good book,but I'd love to talk about a perfect customer services.
I must tell you,the customer services of Amazon are the most Perfect services I have run into.Now,my problem is solved quickly. A Chinese Costmer who have got perfect customer Services From Amazon 2009.12.12 When I received this book from Amazon,there is a big bug:there are 30 pages missing.But those pages are very important for me,it's very interesting and I'm interested in them.So,When I found this problem,I think I would contact Amazon.I have tried to tell Amazon about that,but I found a problem:if I return this book to Amazon,I have to pay so much money to ship it.Look here:I am a Chinese and I live in Asia.If return it to Amazon,I should pay about 30 Dollars to send the book From ASIA TO USA.It's EXPENSIVE and much too SLOW to me.So,I find the E-mail address of Amazon.I wrote an e-mail about what happened.I hope to get help from Amazon.
The customer services of Amazon are very friendly and efficient.The reply is given so quickly--Only 5 minutes from I sent the e-mail to Amazon,I reveived the reply of costmer services.Only 5 minutes.Maybe you will think:"5 minutes is not very short",But I want to tell you,this is the most quickly costmer services I have run into.Okay,if you think a quickly reply is not very important,I'd like to tell something about what happened then.To my surprised,The customer services told me:"I've created the replacement order listed below".
They analyze the most vital parts of the book, quoting the most prominent lines, and augmenting them with modern examples.The editors have decided to remove some chapters from the book, and to put it instead to the accompanying CD. Instead of that, they have an advertisement page in the book offering to purchase the 1951 edition separately from McGrawHill. The editors have decided to base this book on the second edition of Security Analysis, published in 1940, because it was the most comprehensive edition. The editors have assembled a team of contributors who wrote prefaces for each chapter: a prominent financial writer and historian, a leading value-investing academic, an experienced financial journalist, and modern-day practitioners. The editors could have also put the chapters of the 1951 edition to the CD. Because these contributions were submitted during the second half of 2007 and early 2008, you will not see references to the credit crisis and sharp market sell-off. I have found these contributions very valuable.
Alternatively, they could omit the CD and merely print the link somewhere in the book. I don't know what made the editors put these PDFs online rather than to the CD.
The editors have also added a new essay on global value investing. This is not very convenient.
The editors have also decided not to alter the text of this classic work. In fact, the CD has no chapters but only a single link to a website where the chapters can be downloaded as separate PDFs.
Summary:Pros: valuable contributions that comment the most promising ideas of the authors.Cons: the attached CD is a real mess. These contributions provide a fresh perspective based on their own approaches to value investing.
The reason is that instead of focusing myopically on very recent developments, the editors took a long-term view that would be applicable in both good markets and bad.
However if you buy this book and want to read it you will either 1) have to print the missing material or 2) have your computer handy. I read the 1934 version from a local library and ordered this version for my library. Also the print quality is uneven, especially towards the end of the book in my copy (some pages are darker than others). I was unable to find a PDF of the full 1940 version on the CD or available for download. But as someone else has pointed out the 6th edition is not the full 1940 version. There are actually 11 chapters & the appendix to the 1940 edition "missing" from the book and, using the CD, you can download them from the McGraw Hill website.
|
