A MODERN THEORY OF SECURITY ANALYSIS - HOW GRAHAM,BEN WISDOM TRANSLATES IN TODAYS STOCK-MARKET

Most of Ben Graham's philosophy in 1931 works today. Using a multifact or framework, the author explains how security analysis is shown to se ek four contrarian attributes: 1) non-obviousness, 2) non-linearity, 3 ) non-information, and 4) factorless. Once these attributes are unders tood, Graham's rules can be understood in rigorous analytical framewor k. This understanding clarifies a number of important security selecti on issues: how to reduce transaction costs, how results may be more me asurable to clients, how quantitative security analysis differs from t raditional methods, how computers should be used to enhance traditiona l methods, and why indexing may increase.