Security Analysis is the fundamental research of tradeable financial instruments in order to determine its intrinsic value. The process follows a bottom-up approach, by assessing the qualitative and quantitative factors that determine the underlying value of an individual security.
Origin of Security Analysis
Ben Graham and (to a lesser extent) David Dodd are considered the founding fathers of Value Investing. Graham and Dodd pioneered a method of analysing the financial statements in order to measure the underlying value of a security. This value could then be compared with the market price, which would determine the “cheapness” of the stock.
What is a Security
A security is a tradable financial instrument that derives its value from a business operation. Common and preferred stock, debt and other forms of corporate credit are considered to be securities. Financial instruments linked to commodities, such as commodity futures and forward contracts, are not considered to be securities.
Write-ups and Research
- EXOR | FCA Monetization and Share Repurchases
- Overstock | A Special Situation
- Should Liberty Expedia Holdings Even Exist?
- Dundee Corporation | A Race to the Bottom
- Hauppauge Digital: Gone Dark but is there Value?
- Origo Nears Sale of Tempo Share
- Winland Holdings Corporation (WELX)
- The Arion Bank IPO and what happens after?
- Origo and the value of Tempo Software
- Oaktree Capital: Thoughts on Valuation
- Exor Discount to NAV