A Modern Approach to Graham and Dodd Investing [Hardcover]

An updated approach to classic security analysis
The principles of value investing outlined by Graham and Dodd in the 1940s continues to be used today by individuals and companies who face challenging investment decisions. A Modern Approach to Graham and Dodd Investing examines the classic Graham and Dodd approach to valuation and updates it for the twenty-first century. Thomas Au, a credentialed analyst with a leading insurance company and an ex-Value Line analyst, reworks the basics of value investing from net present value, financial statement analysis, and return on capital to return and leverage, asset allocation, and diversification. Through case studies and real-time analysis, A Modern Approach to Graham and Dodd Investing presents readers with examples that will make analysis and portfolio theory more relevant and powerful.
Thomas P. Au (Hartford, CT) is a Vice President and Portfolio Manager for the investment arm of a large insurance and healthcare provider. His specialty is emerging and international markets. He received his BA, cum laude, with a double major in economics and history, from Yale University, and an MBA in finance from New York University.

PREFACE xi

PART I Basic Concepts 1

CHAPTER 1 Introduction 3

CHAPTER 2 Investment Evaluations and Strategies 16

PART II Fixed-Income Evaluation 29

CHAPTER 3 Foundation of Fixed Income 31

CHAPTER 4 Fixed-Income Issues of Corporations 47

CHAPTER 5 Distressed Fixed Income 63

PART III Equity Evaluation 79

CHAPTER 6 Cash Flows and Capital Expenditures 81

CHAPTER 7 Analysis of Asset Value 96

CHAPTER 8 Some Observations on the Value of Dividends 112

CHAPTER 9 Some Warnings about the Use of Earnings in VlC'