Preview. Written from general knowledge to guide your reading. It's replaced by full study notes once you record this chapter.
What to listen for
- The core of security analysis: how an analyst values a stock using future earning power, financial strength, dividend record and quality of management.
- Graham's simple growth-stock valuation formula (a base P/E plus a multiple of expected growth) comes with heavy caveats.
- Listen for why projections are uncertain and why the margin of safety has to absorb that uncertainty.
- Rule #1 link: compare it with Sticker Price (EPS × growth × future P/E, discounted at 15%).
Record this chapter
Read it (and Zweig's commentary) aloud, or record your own takeaways afterwards. Then upload the file as ch11.m4a (or ch11-part2.m4a, ch11-commentary.m4a, ch11.txt) to your private ruleone-library repo.