Security Analysis is a book written by Benjamin Graham and David Dodd, first published in 1934. It is considered to be one of the most important books on investment and is widely used as a textbook in finance and investment courses. The book provides a detailed analysis of the principles of security analysis, which is the process of evaluating the value of a security, such as a stock or bond, to determine its intrinsic value and its potential for future growth.

The book is divided into five parts: “Introduction,” “Analysis of the Income Statement,” “Analysis of the Balance Sheet,” “Analysis of the Statement and Earnings of the Company,” and “Analysis of the Market Price of Securities.” Each part provides a detailed examination of the various aspects of security analysis, such as financial statement analysis, industry analysis, and market analysis.

One of the key concepts presented in the book is the idea of intrinsic value, which is the true value of a security based on its underlying assets and future earnings potential. The authors emphasize the importance of determining the intrinsic value of a security in order to make informed investment decisions. They also stress the importance of conducting a thorough analysis of a company’s financial statements in order to gain a better understanding of its financial health and potential for future growth.