Which Edition of "Security Analysis" Should I Get?
Hi,
I'm a stock picking noob, and I've heard that "Security Analysis" by Benjamin Graham is a good book to start with, but what edition should I get? There seem to be 3-4 out there each with subtle differences, so which one would WSO recommend?
Secondly, is there a good book for learning how to read balance sheets, income statements, and cash flows from an investment standpoint? I know generally what various things on the BS, IS, SCFs mean, but I have no clue how to predict future earnings, or determine if a company has a "clean balance sheet", so is there a good book that helps illustrate these things?
I found technical analysis to be helpful when I first started out too...just like Technical Analysis for dummies or something, pretty decent overview.
its Security Analysis doofus
6th ed. is the newest I believe, and is the one I have. This seems to be it:
http://www.amazon.com/Security-Analysis-Business-Economics-no/dp/B001TH…
It has a hundred pages plus of forewards by very good managers, which are worthwhile if I remember correctly
Sounds good, I'll pick that one up.
Any tips for books on reading financials from an investment standpoint? I was hoping I'd learn that from intermediate accounting, but so far its just accounting from an accountant's standpoint and not much more than that.
Only invest in companies that you can explain to someone exactly how they are able to make money. If you can't do that, you really don't have any reason to give them your money.
Fair enough, but isn't knowing one's way around a balance sheet a good skill to have regardless? That's why I was hoping there is a good book for investors that aids in that department.
Absolutely. Go buy this and read it over and over. http://www.amazon.com/Interpretation-Financial-Statements-Benjamin-Grah…
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