Security Analysis - Chapter 1

Security Analysis by Benjamin Graham and David Dodd was first published in 1934. It is a fundamental book for serious students of value investing. 

Security Analysis - Introduction

Security Analysis by Benjamin Graham and David Dodd was first published in 1934. It is a fundamental book for serious students of value investing. Here is the abstract from the book's Introduction.

Case Study: Lessons from Auto Parts Suppliers Bankruptcies

Disclaimer: The views expressed here are mine and may change without notice. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Please see important disclaimers here and here.

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Often macroeconomic factors such as low car demand are quoted as reasons for auto parts suppliers' bankruptcies. However, it is ironic to observe suppliers go bankrupt when car companies and dealerships are making record profits. What led to this outcome? Let's look into the potential reasons.

Representation crisis

As I wrap up the current earning season, I find that my confidence in reported numbers doesn't increase. Inaccurate representation about current business operations and future prospects keep showing up in corporate earnings reports.

The Quality Of...

Disclaimer: The views expressed here are mine and may change without notice. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Please see important disclaimers here and here.

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Consider a company whose revenues are increasing, whose profits are increasing, and whose management is great. Can it be a bad investment candidate? It doesn't sound like it initially, but it could be a bad bet if the quality of key company tenets is not judged properly. Let’s examine this idea closely by evaluating a few business analysis items.