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Historic Annual Reports & Graham's Security Analysis #1

|Includes:Curtiss-Wright Corporation (CW)

I remember reading Graham & Dodd's Security Analysis years ago and learning a great deal from the book. My only gripe I had was not having access to the annual reports of the companies that Graham mentions in his examples. This isn't a negative against the book, but I knew I was not getting the full effect of the lessons he was teaching without having access to the reports he was referring to. I'm sure other investors who have read the book probably have felt the same way.

Since I have found sources that do have some of these historic annual reports, I think it would be beneficial for us to check some of them out to add some color to the examples that Benjamin Graham brought up Securities Analysis.

The first example I'd like to examine in Wright Aeronautical Corporation (now known as Curtiss-Wright CW) which Benjamin Graham made a mention of while making a point about analytical judgments on the stock market's behavior.

He said:

"Let us take an example from the field of common stocks. In 1922, prior to the boom in aviation securities, Wright Aeronautical Corporation stock was selling on the New York Stock Exchange at only $8, although it was paying a $1 dividend, had for some time been earning over $2 a share, and showed more than $8 per share in cash assets in the treasury. In this case analysis would readily have established that the intrinsic value of the issue was substantially above the market price."

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Stocks: CW