Getting started in security analysis

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! Getting Started in Security Analysis, Second Edition 3 Contents 7 Acknowledgments 9 Introduction 11 Investment Report Checklist 13 People 17 Assets 18 Technology 18 International Strategy 19 Return 20 Operations 20 Cost-Effective Management 21 Part 1: Tools of the Trade 23 Chapter 1: Accounting 27 The Big Three 27 The Balance Sheet 28 The Income Statement 31 The Cash Flow Statement 35 Chapter 2: Economics 45 Determining the Health of the Economy 46 Government Releases and Indicators 50 International Investing 73 Appendix—International Parity Conditions 77 Purchasing Power Parity 77 Interest Rate Parity 80 Chapter 3: Investment Mathematics 87 Future Value of Money 89 Present Value of Money 91 Net Present Value and Internal Rate of Return 93 Annuities 97 Present Value and Future Value 102 Annuities 104 Net Present Value and Internal Rates of Return 105 Chapter 4: Quantitative Analysis 107 Basic Statistics 107 Part 2: Fundamental Financial Security Analysis 127 Chapter 5: Equity Analysis and Valuation 129 Sources of Information 132 Return on Equity (ROE) 134 Using Financial Statement Footnotes 140 Management Analysis 143 Industry Analysis 147 Evaluating Growth 155 Evaluating Risk 164 Equity Valuation 166 Case Study: Equity Valuation 173 Chapter 6: Credit Analysis 179 Basics of Bonds 181 Credit Analysis Tools 186 Credit Ratings 198 Chapter 7: Real Estate 213 Types of Real Estate 214 Real Estate Financial Statements 217 Investing in Real Estate: Hard Assets 220 Investing in Real Estate: Real Estate Loans 228 Investing in Real Estate: Mortgage-Backed Securities 236 Investing in Real Estate: Real Estate Investment Trusts 250 Part 3: Portfolio Management 269 Chapter 8: The Investment Management Process 271 Modern Portfolio Theory 271 Investment Management 280 Step 1. Investor Diagnosis—Ascertaining One’s Needs and Constraints 281 Case Study: Investment Policy Statement for Susan Fairfax 291 Step 2. The Capital Markets—Managing Expectations 305 Step 3. Portfolio Construction and Implementation 309 Step 4. Monitoring the Portfolio 310 Epilogue 317 Appendix: Selected Tables 319 Bibliography 325 Index 327

An updated look at security analysis and how to use it during tough financial times

Due to the current economic climate, individual investors are starting to take much more time and effort to really understand their investments. They've been investing on their own in record numbers, but many have no idea how to handle the current financial crisis. This accessible guide shows you how to take control of your investment decisions by mastering security analysis.

This fully updated Second Edition of 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.

• Easy-to-follow instructions and case studies put the tools of this trade in perspective and show you how to incorporate them into your portfolio
• Along with dozens of examples, you'll find special quiz sections that test your skills
• Focuses on key security analysis topics such as deciphering financial statements, fixed-income analysis, fundamental analysis, and security valuation

If you want to make better investment decisions, then look no further than the Second Edition of Getting Started in Security Analysis.

This second edition of Getting Started in Security Analysis far exceeds the content of the first edition in every way. In particular, the discussion around management and culture adds enormous value to understanding the complexity of organizations, and the capstone case study on Hamilton Enterprises enables the reader to solidify his or her learning from the entire book. It is a must read for both someone new to finance as well as more seasoned professionals who want to brush up on the basics. "This accessible new guide covers everything you need to fully grasp the fundamentals of security analysis. Getting Started in Security Analysis focuses on the practical mechanics of such vital topics as fundamental and technical analysis, valuation, portfolio theory, and fixed income analysis. Along with dozens of examples and case studies, you'll also find special workbook sections that enable you to put your new skills to work."--BOOK JACKET.