Getting Started in Security Analysis

Rated 4.6 out of 5 based on 5 customer ratings

$11.75

Getting Started in Security Analysis covers everything you need to fully grasp the fundamentals of security analysis. It focuses on the practical mechanics of such vital topics as fundamental analysis, security valuation, portfolio management, real estate analysis, and fixed income analysis.

Intorduction:

Getting Started in Security Analysis provides the reader with a ﬁrm foothold on this important subject (although the basic concepts may prove helpful in many of life’s other exercises). Mastery of investment analysis takes much more than a cursory read through this text; it requires years of study and perhaps decades of practical experience. Our hope is to provide today’s investor—novice or seasoned—with enough understanding to simulate the workings of Wall Street analysts. An investor, after reading this manual, will have a fundamental store of ﬁnancial information; will understand the terms, pricing, and research of a ﬁnancial services provider; and will ﬁnd the daily ﬁnancial papers more interesting.

Many investors are well aware of the basics of ﬁnancial planning through exposure to myriad seminars, books, magazines, and web sites. They need the next level of information. Just think about how many of your friends understand the risk-return trade-off (more risk, more return), asset allocation (spreading assets around into many classes), and the need for long-term investing habits. But how many wish they understood how a company’s shares are valued, or how the workings of regression analysis and the typical economic releases in a given month directly affect the value of their investments? Part 1 is designed to provide this essential background.

Part 2, “Fundamental Financial Security Analysis,” sets forth the notion that the tools described in Part 1 can be of practical use only if the investor understands how a given company is valued. Thus in this part, we explain the methodology behind the valuation techniques of a company’s equity and debt securities:

With tomes of data available, how should we quantify the value of this company? Which calculations must be executed to ascertain the true value of this company?

Consequently, these valuation techniques build on the lessons of Part 1. Without a ﬁrm understanding of the tools analysts use, it is impossible to ﬁrmly grasp the true valuation process. Part 3, “Portfolio Management,” is a discussion of the investment management process—the symbiosis of the tools and valuation techniques with the ﬁnancial planning process. It includes an examination of the laws and regulations that govern this highly regulated industry. To fully grasp these legal constraints, today’s serious investor must understand and be able to use the investment management process.

5 reviews for Getting Started in Security Analysis

Rated 5 out of 5

Juliette Cisneros (verified owner) – April 2, 2023

Authors have written the definitive work on what it takes to really understand investment analysis. Importantly, they’ve done it using an easy to follow step-by-step format and clear, understandable language. This book will be an invaluable tool for both prospective as well as seasoned security analysts for generations to come.
Rated 5 out of 5

Milan Villegas (verified owner) – July 20, 2023

This is a book very well worth owning and reading. It covers all the basic forms of investment. It is a great reference tool to keep at desk side to refer to when needed. It is a solid, basic book in fundamentals, easy to understand with good clear and concise examples.
Rated 5 out of 5

Kori Serrano (verified owner) – July 23, 2023

This book provides a thorough and fundamental education on the art and science of securities analysis. It presents years worth of field-level experience within its covers. Principally simple, yet profoundly practical!
Rated 3 out of 5

Archie Guerra (verified owner) – December 16, 2023

Getting Started in Security Analysis is definitely worth reading, especially if you are generally new to economics and finance. He covers a broad range of issues: reading a balance sheet; interpreting economic indicators; evaluating debt. All worth knowing, and his mathematics is decent (as long as you stay alert–there are some minor errors).
At the same time, I found the book giving me an off taste. I’m interested in value investing, which looks at stock as a piece of a business, and doesn’t care about fluctuating stock prices or predictions of the future. Klein certainly discusses the value of businesses, but he gets into those other things as well. For example, he suggests that predicted future earnings are “even better” than past earnings for evaluating a company. Sure, if the prophet Isaiah is making the prediction! Klein seems a little too market focused for me, and it keeps me from enjoying his book as much as I should.
Rated 5 out of 5

Jessie Cannon (verified owner) – December 30, 2023

I wish I’d had this book when I started in investment banking 10 years ago! It is the perfect primer for new professionals who may not have studied finance in school and for all professionals looking to brush up on their skills. I am not a professor, but I can image this being an excellent book to use in an introductory business school course as well.

Getting Started in Security Analysis covers all the fundamentals. It clearly lays out the principles you must understand and enforces those learnings with real world examples. I was not expecting the quizzes to be helpful but I found them to be an excellent tool. The segment on equity valuation was particularly strong. I find valuation to be tricky and sometimes confusing, especially for people new to the industry. This book did an excellent job of breaking down the ins and outs.

And finally, this book did not bore me to death! As any reader of finance and business books knows, these books can be dry and dreary. The authors did a great job of keeping the reader engaged and their clear writing made it easy for me to digest the information.

Highly recommended!