No. of Recommendations: 10
Differences between the 1934 and 1940 editions of Security Analysis

Comments: All chapter numbers come from 1940 version.

Introduction: Major rewrite. While both introductions are worth reading and close examination I think the 1934 introduction is the better of the two.

Chapter 1: Minor updating.

Chapter 3: Minor updating mostly as a result of SEC legislation.

Chapter 4: Mr. Graham added three paragraphs in which he discussed the differences between investing and speculation. There are significant revisions throughout the chapter on this topic. I think the chapter in the 1940 edition is more worthwhile.

Chapter 6: New examples added. New concluding paragraph added.

Chapter 7: Several paragraphs rewritten/revised.

Chapter 8: One section added due to new legislation.

Chapter 9: Material on bonds has been added to the 1940 edition which I thought was interesting reading.

Chapter 11: This chapter has some information added and some rewritten.

Chapter 12-16: Minor changes.

Chapter 17: Lots of new information leases and guaranteed obligations.

Chapter 18: New section added on Corporate Insolvency and Reorganization.

Chapter 21: Minor changes.

Chapter 28: Major changes. I believe the 1940 edition of this chapter is worth a close examination.

Chapter 31: Information has been added to the 1940 edition.

Chapter 33: Lots of added information and revision have been made to the 1940 edition.

Chapter 34: Major revisions/additions. The 1940 edition's chapter is better IMHO.

Chapter 35: The 1940 edition adds a whole new chapter on public-utility depreciation policies.

Note: Chapter numbers are off by one from the 1934 edition from this due to new chapter.

Chapter 36: Extensive additions and revisions.

Chapter 39: Additions, new examples, changes from 16X to 20X average earnings as high a price as can be paid for common stock for investment purposes.

Chapters 41-44: Various parts rewritten some examples updated.

Chapters 45: Lots of revision in the text covering working-capital positions and debt maturities.

Chapters 47: Minor changes with the exception of the sections called Should the Public Finance New Ventures? and Blue-sky Promotions. Interesting comments on IPOs “It is our considered view that the nation's interest would be served by amending the Securities Act so as to prohibit the public offering of securities of new and definitely unseasoned ventures.”

Chapter 49: Interesting section that was added in the 1940 edition that is called, “More General Limitations on the Value of Comparative Analysis.”

Chapter 50: Extensive rewriting and additions. I really thought the new additions and sections were valuable.

Chapter 52: Very interesting rewriting and additions. I found the new section called, “A Summary of our Views on Investment Polices” interesting.
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