As you make this journey, it should become obvious that investment analysis and its related extensions are rigorous enough to be taken as an actual science.

Like other scientific disciplines, investment analysis requires a working knowledge of its basic concepts. Part One explores these concepts, with considerable emphasis on exercises that hone awareness, expertise, and understanding of this once arcane subject. A century ago, the task of investment counseling belonged to men of prudence who, for fear of being wrong, usually invested funds with guaranteed returns and did not rely on scientific discipline. The fear of not being beyond reproach—otherwise known as ''reputation fear"—provided enough guidance for these men. Typically the wealthy and elite, they did not see the utility of investment analysis for the simple reason that they did not have to—they were already rich.

Today, investment analysis plays a meaningful role in planning for a comfortable financial future. This book provides the reader with a firm foothold on this important subject (although the basic concepts may prove helpful in many of life's other exercises). Mastery of investment analysis takes much more than a cursory read through this text; it requires years of study and perhaps decades of practical experience. My hope is to provide today's investor, novice or seasoned, with enough understanding to simulate the workings of Wall Street analysts.