Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts

Security Analysis: The Classic 1934 Edition Review

Security Analysis: The Classic 1934 Edition
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Security Analysis: The Classic 1934 Edition ReviewAlthough it is fun to read Graham & Dodd's First from the context of historical perspective, there is more to this volume than history. When I first learned that Warren Buffett keeps and peruses EACH edition of Graham & Dodd's "Security Analysis", this struck me as a sort of silly fanaticism. But anyone who takes the time to read more than one edition of "Security Analysis" will understand why Buffett probably keeps all four. For better or worse, each edition has some gem which may not be found in the other volumes. In the first, for instance, there is a section on rights offering analysis which can't be found in the 3rd and 4th editions (I've actually never been able to get my hands on a second edition, so I don't know whether the equation he offers in in the 2nd or not).
I'm not sure if this would be the first "Security Analysis" volume I'd try to tackle (the 3rd is probably the best...Graham participated less actively in the 4th), but if you are comfortable enough with security analysis terminology to know what is antiquated and what is not in this 1934 text, you will not be sorry you made the effort to buy and read it.Security Analysis: The Classic 1934 Edition Overview
Rare is the opportunity to see, much less own, an original. But this unusual, carefully crafted reproduction of Benjamin Graham and David Dodd's immortal Security Analysis gives you that chance--to read and treasure a true classic--the book that gave birth to value investing.

Continuously in print through five editions, for more than 60 years, and through nearly a million copies, the primer for many of America's most illustrious investors--and the wellspring of Graham and Dodd's Wall Street Immortality--Security Analysis is indisputably the most influential book on investing ever written. Still the investors' bible, it's as frequently consulted today as it was when it first appeared in 1934.

Of course, over the years and over five editions, Security Analysis changed. Its language was modernized. New material was added. Metaphors and examples were brought up to date. In the light of changing times, these alterations were necessary and appropriate.

But what of the original book? The very durability of this work arouses our curiosity. And what we discover when we return to the original is very simply a classic, a work whose uncompromising worth has not paled since it first saw the light of day in 1934.

The original words of Benjamin Graham and David Dodd--put to paper not long after the disastrous Stock Market Crash of 1929--still have the mesmerizing qualities of rigorous honesty and diligent scrutiny, the same riveting power of disciplined thought and determined logic that gave the work its first distinction and began its illustrious career.

The words you will read here are eloquent. Not only a financial genius and a man of high repute for honorable dealings, Graham was a man of letters invited to teach in the literature department at Columbia University (as well as in the economics and philosophy departments).

But this reproduction is far more than a historical curiosity, an interesting object, and a delightful read. It presents the original Graham/Dodd method of investing--told in their own words as they first described it in the 1930s.

What exactly is this method that has drawn such longterm devotion in the notably fickle reaches of Wall Street?

Graham and Dodd were Wall Street's first bargain shoppers. In this book they first explain their methods for locating bonds and stocks "which are selling well below the levels apparently justified by a careful analysis of the relevant facts." In this book, they tell you precisely how to find these undervalued securities and analyze those "relevant facts."

Are these methods still practical and usable today? The great fortunes created by value investors Warren Buffett, Mario Gabelli, John Neff, Michael Price, and John Bogle testify that they certainly are.

In their preface to this book, Graham and Dodd write that they hope their work "will stand the test of the ever enigmatic future." There is no doubt that it has.

This distinctively wrought book is a careful reproduction of the 1934 edition, containing every word of the original.


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Security Analysis: Principles and Techniques Review

Security Analysis: Principles and Techniques
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Security Analysis: Principles and Techniques ReviewIf you have read The Intelligent Investor, and want a text that will expand and delve deeper into fundamental analysis, this book is for you. The separation between this book, and books similar in content, is the fact that Graham shows examples of his applied techniques. The book is broken down into two main sections, fixed value investments(bonds, preferred stocks, ect.) and common stock analysis/selection. He takes you step by step through income statement and balance sheet analysis. Graham is wary of coporate reports, especially when it comes to earnings, and points out coporate trickery to watch out for and avoid. The topics are detailed, and the exaples extensively researched. Overall, Security Analysis is a mixture of art and scienece that lays a timeless foundation for financial analysis.Security Analysis: Principles and Techniques Overview
"Graham's ideas inspired the investment community for nearly a century."--Smart Money

"Graham's method of investing is as relevant today as it was when he first espoused it during the Roaring Twenties."--Investor's Business Daily

Benjamin Graham's revolutionary theories have influenced and inspired investors for nearly 70 years. First published in 1934, his Security Analysis is still considered to be the value investing bible for investors of every ilk. Yet, it is the second edition of that book, published in 1940 and long since out of print, that many experts--including Graham protégé Warren Buffet--consider to be the definitive edition. This facsimile reproduction of that seminal work makes available to investors, once again, the original thinking of "this century's (and perhaps history's) most important thinker on applied portfolio investment."


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Render Unto Rome: The Secret Life of Money in the Catholic Church Review

Render Unto Rome: The Secret Life of Money in the Catholic Church
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Render Unto Rome: The Secret Life of Money in the Catholic Church ReviewJason Berry, along with his colleague Gerald Renner (now deceased) will forever be remembered for the solid investigative journalism that revealed the truth about the sordid life of Fr. Maciel Maciel, founder of the Legion of Christ so honored and beloved by the late John Paul II. Their book, appropriately titled Vows of Silence: The Abuse of Power in the Papacy of John Paul II, was roundly ignored for years by the Vatican and the Congregation of the Doctrine of Faith headed by Ratzinger. It demonstrated that letters and formal requests to be heard by victims of Maciel's sexual abuse in seminaries he founded were ignored for years; it makes one weep and outraged at this man's perfidy. Yet, Pope John Paul II was so enamored of Maciel's fund raising prowess and of his all-obedient troops that he took him with him on plane rides to Latin America and ordained fifty-some of his priests in a massive public showing of support in St Peter's square. Ratzinger once commented that it would not be "prudent" to go after Maciel since he had done so much good for the church. Try telling that to the twenty-some seminarians he abused AND the two common law wives he had on the side along with four children, all of whom (boys and one girl) he also abused sexually. Ratzinger as Pope Benedict finally got around to investigating Maciel and his Legion of Christ order which, among other strange and fascist practices, demanded a vow of not speaking badly of the "saintly founder" (that is, Maciel). Maciel was not only a great fund raiser and recruiter for the priesthood, he was also enamored of Pinochet and other right wing dictators.
Now Jason Berry continues his probings into the sordid facts about the Roman Catholic Church in our time. He moves from pedophile scandals to financial scandals in Render to Rome: The Secret Life of Money in the Catholic Church. The two scandals are by no means separate however if one considers how $3 billion of Catholic lay peoples' hard-earned cash has gone into paying lawyers and victims of the pedophile story. Or if one traces the money flow, which Berry does, from parish to bishop and to what is often secret funds. Berry is himself a Roman Catholic; he is not trying to destroy the church but report on it. The hierarchy is destroying the church, not truth-telling reporters. Berry comments that the Vatican's net worth "is invisible." In its 2007 balance sheet it listed the value of St Peter's Basilica and other historic buildings at 1 euro each ($1.47)!
The current Vatican secretary of state, Cardinal Bertone, was a lowly canon lawyer picked from obscurity by Ratzinger to investigate the Maciel case; he swore all the victims to secrecy and ended up doing nothing about Maciel. For his loyalty he was named archbishop of Genoa, then Cardinal, and now Secretary of State. While he was ecclesial chief of Genoa he found the time and interest to endorse Maciel's book (since proven to have been lifted 80% from a dead theologian's book--add plagiarism to Maciel's list of sins and crimes). Bertone endorsed it in the most effusive way by writing a celebratory preface to the Italian edition in 2003. To repeat, this same Bertone so enamored of Maciel is now secretary of state for Pope Benedict's Vatican. It is amazing what loyalty will buy.
The previous secretary of state was a certain Cardinal Sadono--the same cardinal who interrupted the Easter Mass in St Peter's Square in 2010 to declare that Ratzinger was being abused by "petty gossipers" who complained that he was not taking action about pedophie priests and bishops and cardinals who cover up for them. It was Sadano who put pressure on Ratzinger at the CDF not to act against Maciel in the first place. This same Sadono had worked in Chile under Pinochet's dictatorship, ever obsequious to his fascist ways even though hundreds of priests, sisters and lay leaders were being tortured and murdered by Pinochet's regime. He approved only those priests for bishop who supported Pinochet. He was the recipient of a special medal given him by Pinochet in 1988. And it was John Paul II (now destined to "sainthood") who handpicked Sadono as secretary of state to manage the Curia and to offer "more hard line resistance" to communism. Berry makes a strong case that Sodano laundered money for his erstwhile nephew and his business partner Follieri who gave money to the Vatican and who is now in prison in New York for fourteen counts of wire fraud, money laundering and conspiracy. After yielding his job as secretary of state to the great and loyal Bertone, Sadono became dean of the College of Cardinals just in time for the College to vote Ratzinger as Pope Benedict XVI.
William Casey, the CIA director under Reagan was a right wing Catholic so enamored of Maciel that he and his wife gifted them with a seven figure donation--a plaque honors their bequest in the novitiate in Cheshire, Ct. Casey steered money to the Vatican to support Solidarity in Poland and apparently in return the Vatican went after Liberation Theology and base communities in South America. Casey also fed money to right-wing militias in El Salvador, Nicaragua and Guatemala, the very militias that murdered five Jesuits and their housekeeper and her daughter in El Salvador and also Archbishop Romero. Other champions of Marcel included Jeb Bush and Cardinal Rode who was head of Religious Orders in the Vatican and who took vacations in Cancun at the expense of the Legion. Not surprisingly, righteous right-wing Catholic William Bennet, ever on American TV, was also a proud and loud admirer of Maciel.
Berry asks the question: "Why beatify a pope whose faith in Maciel and myopia on the abuse crisis left a trail of human carnage? The rush to spectacle cannot airbrush facts from history." Spectacle is indeed what the present and past papacies love about Television. And the media loves to oblige (ABC hired one of Maciel's Legion of Christ priests to offer commentary for the funeral of the last pope.)
So much for Rome, church headquarters. What about America? The bottom line is that the bishops in their respective dioceses are like medieval princes who rule practically unchecked when it comes to financial matters. Many dioceses have no way of keeping healthy books even if they wanted to keep them. Transparency is rare and often non-existent. Cardinal Law in Boston, for example, famous for his passing pedophile priests from parish to parish and for his promotion to run a fourth century basilica in Rome, took money earmarked for priestly retirements and used it to pay off pedophile claims without telling anyone. The result? The clergy retirement fund is over $104 million in the hole. Law did this secretly before the pedophile scandal broke in 2002. Law currently serves on the Commission in the Vatican that appoints bishops worldwide.
One of his handpicked bishops, Bishop Richard Lennon of Cleveland was famous in Boston where he oversaw "Reconfiguration," i.e. the closing of parishes usually taking into account none of the objections and alternatives of parishoners who held sit ins and sleep ins in certain parishes targeted for closure there. On arriving in Cleveland, Lennon set out to close 53 parishes while more local people felt the number could be limited to fifteen. He did not make himself the most popular cleric in town. In fact, so unbeloved by his flock is Lennon that when he comes to a parish to conduct confirmation he wears a flak jacket (sic!) and is accompanied down the aisle by two policemen. Lennon's plan had no in-put from urban planners, public officials, priests or nuns. It included shutting down eight churches officially designated as historical landmarks.
Berry traces the money trails in the Boston diocese, Cleveland, New Orleans and Los Angeles. A prime example is the most important and historic black parish in New Orleans, built in 1842, that Bishop Hughes (also from Boston and another Law protege) shut down . A near riot among the parishoners eventually got it reopened but the charismatic pastor was exiled to Texas. The point is made that an effort to raise money through appeals to significant black leaders would have done wonders to keep the place open. After all, this was post-Katrina. But the Bishop never tried an appeal like that.
Perhaps the most startling news to me on reading this book (other than the flack-jacketed Bishop) was to hear the facts about Cardinal Mahoney in Los Angeles. Mahoney, Berry points out, was even more duplicitous than Cardinal Law but he was more expert at holding off the legal attacks and his diocese was more flush with cash that he put into legal defense funds against victims of pedophilia. However, charity funds dried up almost entirely. Mahoney was a genius at manipulating the media. Perhaps one expects that of a bishop of Hollywood land. "Mahoney's decisions in recycling perpetrators, and living among them, were more egregious than Bernard Law's scandal. But the media-savvy Mahoney spent heavily on publicity and used his financial muscle to wage the legal fight...ratcheting up an overall final payout of $750 million. But Mahoney was not indicted." (323)
Berry proposes a solution to the legal battles raging over priestly pedophilia offered by Patrick Schiltz, of the St Thomas School of Law in Minneapolis. Why not set up a national tribunal of well-respected people who are completely independent of the church to arbitrated sexual claims against the church. "The most important benefit of this system is that it would let the church and the victim work together in a common cause--achieving a just and healing result--rather than put them against each other through several years of litigation," Schiltz proposes. The idea was offered in 2003; so far the bishops have not come on...Read more›Render Unto Rome: The Secret Life of Money in the Catholic Church OverviewAN INVESTIGATION OF EPIC FINANCIAL INTRIGUE, RENDER UNTO ROME EXPOSES THE SECRECY AND DECEIT THAT RUN COUNTER TO THE VALUES OF THE CATHOLIC CHURCH.The Sunday collection in every Catholic church throughout the world is as familiar a part of the Mass as the homily and even Communion. There is no doubt that historically the Catholic Church has been one of the great engines of charity in history. But once a dollar is dropped in that basket, where does it go? How are weekly cash contributions that can amount to tens of thousands of dollars accounted for? Where does the money go when a diocese sells a church property for tens of millions of dollars? And what happens when hundreds of millions of dollars are turned over to officials at the highest ranks, no questions asked, for their discretionary use? The Roman Catholic Church is the largest organization in the world. The Vatican has never revealed its net worth, but the value of its works of art, great churches, property in Rome, and stocks held through its bank easily run into the tens of billions. Yet the Holy See as a sovereign state covers a mere 108 acres and has a small annual budget of about $280 million.No major book has examined the church's financial underpinnings and practices with such journalistic force. Today the church bears scrutiny by virtue of the vast amounts of money (nearly $2 billion in the United States alone) paid out to victims of clergy abuse. Amid mounting diocesan bankruptcies, bishops have been selling off whole pieces of the infrastructure—churches, schools, commercial properties—while the nephew of one of the Vatican's most powerful cardinals engaged in a lucrative scheme to profiteer off the enormous downsizing of American church wealth.

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