I’ve been investing in the stock market for over ten years now and I remember what it was like in the beginning. I spent so much money on books and quick guides none of which provided any real information on stocks for beginners. Well, they offered plenty of information but none of it was all that helpful in navigating my way around investing. That all changed when I discovered a book written by Benjamin Graham called Security Analysis. The weird thing is it was written way back in 1934. I know what you’re thinking. The world has changed quite a bit since then so what on earth can I learn from a book written over 70 years ago?

The interesting part about the book is that although the world has changed, the process of identifying undervalued stocks has not. The teachings of Benjamin Graham still hold true today and that’s why I follow this model. The other reason I value this book so highly is because it’s also the model the most successful stock market investor of all time, Warren Buffett follows. If it’s good enough for Warren Buffett then it’s certainly good enough for me.

Security Analysis is quite an in depth book and I certainly won’t suggest it’s a guide on how to buy stocks for beginners. I feel that if you’re going to start somewhere why not with the best book available. The teachings held within it’s pages will set you up with good habits for the rest of your investing life. There’s no more chopping and changing your portfolio. You identify undervalued stock and stick with it, perhaps for a lifetime. It goes against human nature to do this as so many people panic when they see their share price sliding. The idea’s in Security Analysis are all about forgetting that and knowing that you have a valuable stock that will stay that way for a long time.