As a value investor and a life-long learner, I continue to revisit books that were central to the development of my investment philosophy and approach. Each time I re-read “Security Analysis” by Graham and Dodd, I strengthen my commitment to the discipline of value investing and continue to absorb nuances about an approach that has served me well over a life-time of investing. I am forever indebted to Harold Levy of First Eagle Fund of America for introducing me to this wonderful and timeless work.
This passage below from “Securities Analysis” (edition 1988 p. 6) resonates with me in the current environment of AI and robust technology applications.
Investing as a Discipline
Investing, like medicine, law and economics, lies somewhere between an art and a science. Certain aspects of investing lend themselves to the scientific approach. Moreover, the creation of computerized data banks and advances in quantitative techniques and computer skills have accelerated the use of scientific methods. However, corporations are business enterprises subject to the vagaries of human management and operate in a highly dynamic and competitive environment. Furthermore, many compete in both international and domestic markets. As a result, for the security analyst, the number of variables remains almost infinite, and the judgement factor still dominates investment decisions.
