Chapter 11 – Security Analysis for the Lay Investor
Security analysis involves analyzing the business, its operating results and financial position, its strengths and weaknesses, opportunities and threats, future estimates with certain assumptions, comparisons with similar companies or the same company historically, and a judgment of the security’s attractiveness.
Graham immediately cautions against focusing on the future estimates of growth and sales, as these are the least reliable figures we have . . .
→ Read More: The Intelligent Investor: Ch. 11
May 16th, 2008
 I recently finished reading Diane Francis‘ new book, Who Owns Canada Now: Old Money, New Money, and the Future of Canadian Business. This is a follow-up to her 1987 book, Controlling Interest: Who Owns Canada, which looked at the major actors on the Canadian financial stage.
In 1987, Francis identified 32 different individuals or families that . . .
→ Read More: Who Owns Canada Now?
Chapter 10: The Investor and His Advisers
This is an important chapter because it affects such a large aspect of most investors’ decision making. Graham (correctly, in my view) points out that the vast majority of people depend on the opinions of others in formulating decisions about their portfolio. While it is reasonable to expect that professionals will help steer you away from making mistakes and hopefully help you earn a . . .
→ Read More: The Intelligent Investor: Ch. 10
May 15th, 2008
Great article here by the Middle Class Millionaire illustrating the simple concept of compounding and how even tiny differences in return can make huge differences in the end result if you are investing long term (is there any other way?)Here‘s the table he used. Essentially, this is what you need to know: If you invested $10,000 today, at the compound interest rates below (reinvesting the interest), you would have the following after 45 years: 5% $85,572 6% . . .
→ Read More: Does 1% Really Matter?
Chapter 9: Investing in Investment Funds
Graham believes funds are useful overall. They promote savings and investment and protect against mistakes (through diversification and professional management). Those that invest in mutual funds are likely to do better than those that make stock purchases directly (on average), even though mutual funds tend to do no better than the market as a whole and have higher fees.
Graham suggests the reason funds do . . .
→ Read More: The Intelligent Investor: Ch. 9
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