Tencent Q3 2025 income statement

Tencent's Q3 2025 income statement compared to the previous quarter and the same period last year.

Tencent Condensed Consolidated Income Statement

Key Takeaways:

• Top-Line Growth: Revenue grew 15% year-over-year.

• Bottom-Line Surge: Profit for shareholders grew 19% YoY.

• EPS Outperformance: EPS grew 21% YoY, boosted by share buybacks.

• High Profitability: Gross margin expanded significantly, and operating margin remained strong.

Conclusion

Tencent's Q3 2025 earnings report is overwhelmingly positive and exceeds expectations. It confirms that the strategic shifts towards efficiency, high-margin businesses, and capital returns are paying off handsomely. The company is firing on all cylinders, showing robust growth, expanding profitability, and delivering superior returns to shareholders.

Tencent's wealth comes from two powerful engines:

1. Operational Engine (Retained Earnings): Adds ~RMB 73 billion through selling services and products.

2. Investment Engine (Other Reserves): Adds ~RMB 112 billion through the rising market value of its strategic investments.

This highlights a critical aspect of Tencent: it is not just a technology operating company; it is also a massive and highly successful investment fund. The performance of its investment portfolio has a direct and substantial impact on its overall equity and book value.

Tencent Key Cash Flow Metrics (9M 2025)

(RMB in millions, Estimated)

Line Item	Amount (RMB)	Calculation / Source
Net Earnings (Profit for the Period)	~130,000	Sum of Q2 (56,044) and Q3 (64,943) Profit; Q1 estimated.
+ Depreciation & Amortization	~25,000	Non-cash add-back from income statement adjustments.
+ Other Non-Cash Adjustments	~25,000	Share-based comp, gains/losses from investments, etc.
= Operating Cash Flow (Pre-Working Capital)	~180,000
- Change in Working Capital	~(+10,000)	Net effect of A/R (use), A/P (source), Deferred Revenue (source).
= Net Cash From Operating Activities	~152,340	Primary cash generated from core business.
- Capital Expenditures (CapEx)	~(76,610)	Increase in PP&E (60,278) + Intangible Assets (16,332).
= Free Cash Flow (FCF)	~75,730	Cash available for investors after reinvesting in the business.
- Dividends Paid	~(25,000)	Estimated cash outlay for shareholder dividends.
= Free Cash Flow after Dividends	~50,730	Cash remaining for share buybacks, M&A, or adding to the balance sheet.

Key Takeaways from this Top-Down View:

1. Strong Core Profitability: The starting point of ~RMB 130 billion in net earnings shows a highly profitable core business.

2. High-Quality Earnings: The addition of ~RMB 50 billion in non-cash items (D&A, share-based comp) indicates that earnings are heavily backed by actual cash generation.

3. Efficient Operations: The net change in working capital was a source of cash, meaning Tencent's operations are so powerful that it collects from customers and defers payments to suppliers more than it ties up cash in growing receivables and inventory.

4. Significant Reinvestment: The CapEx of RMB 76.6 billion is massive and confirms Tencent is in a heavy investment cycle, likely for AI and cloud infrastructure.

5. Substantial Free Cash Flow: Despite huge reinvestment, the company still generated an estimated FCF of ~RMB 76 billion, demonstrating the immense scale of its cash machine.

6. Shareholder Returns: The company returns a significant portion of its FCF to shareholders, with an estimated RMB 25 billion in dividends, leaving plenty for its ongoing share buyback program.n dividends, leaving plenty for its ongoing share buyback program.

How Often Has the Stock Market Fallen 40% or More? A handful of times.

A 40% drop is a catastrophic event in the financial markets, known as a severe bear market or even a crash. These events are rare, but they are seared into the collective memory of investors because of the immense financial and psychological damage they cause.

Here’s a breakdown of how often it has happened and the historical context.

How Often Has the Stock Market Fallen 40% or More?

In the modern history of the U.S. stock market (primarily using the S&P 500 and its predecessor indices as a benchmark), a peak-to-trough decline of 40% or more has occurred only a handful of times.

Since 1900, there have been five such devastating declines:

1. The Great Depression (1929-1932): The mother of all market crashes. The stock market plummeted nearly 90% at its worst point. A 40% drop was passed early on in a long, terrifying slide.

   • Cause: A speculative bubble, a banking crisis, and catastrophic economic policy (protectionist tariffs, monetary contraction).

   • Recovery Time: It took until 1954 for the market to regain its 1929 peak—over 25 years.

2. The 1937-1938 "Recession within a Depression": After a partial recovery from the lows of 1932, the market experienced another sharp drop of about -60% from its 1937 peak.

   • Cause: Premature fiscal and monetary tightening by the government and the Federal Reserve.

   • Recovery Time: The market did not sustainably exceed its 1937 peak until the post-WWII boom in the late 1940s.

3. The 1973-1974 Bear Market: A brutal, grinding bear market where the S&P 500 fell -48%.

   • Cause: The OPEC oil embargo, skyrocketing inflation ("stagflation"), and the collapse of the "Nifty Fifty" blue-chip stocks.

   • Recovery Time: It took 7.5 years for the market to reach a new inflation-adjusted high in 1982.

4. The 2000-2002 Dot-Com Crash: After the implosion of the tech bubble, the S&P 500 fell -49%.

   • Cause: Speculative mania in internet and technology stocks with no earnings, followed by a severe recession and the 9/11 attacks.

   • Recovery Time: The S&P 500 reached a new nominal high in 2007, but when adjusted for inflation, it did not fully recover until 2013.

5. The 2007-2009 Financial Crisis: The S&P 500 plunged -57% at its nadir.

• Cause: A housing bubble, a crisis in subprime mortgages, and a resulting global financial system meltdown.

• Recovery Time: The S&P 500 reached a new nominal high in 2013, about 5.5 years after the peak.

Comments:

In 1973, I remembered the OPEC oil embargo and the stagflation it caused to the economy of the UK.  No knowledge of the impact on the stock market, but did noted the prices of properties dropped a lot.  Bank interest rates were sky high (> 10%) at one stage as the central bankers tried to reign in inflation.  Lesson learned:  despite the high interest rate, your cash actually lost value due to the high inflation.

I witnessed the October 1987 crash.  Still remembered the exact day as I happened to be with a stock broker, who lamented how this was going to affect the whole industry severely.  Just started my career and had not invested in the market then.  But it was educational watching the market crashed and rose rather quickly.  However, the impact on the stockbroking industry was real for those who were part of it.

My first stock was bought in 1993.  How intelligent was I in my investing?  On hindsight, I was not intelligent at all.   My buying and selling was based on tips, rumours, greed and fear.  I was very lucky to have an experienced investor who recommended me to buy certain counters and because I believe and know his ability and knowledge, I followed with his recommendations with little hesitation.  His briefing to me on the stock was often a less than 2 minutes brief.  "I think you should look into buying some of this company.  It is doing this and that.  It is a good company and its results have been this and that.  It also gives good dividends."  

Well, I did build up a portfolio of stocks.   Hardly look at the portfolio, as I was far too busy with my more important work.  It was fun seeing the portfolio value rose with the bull market of that time.  By 1994 or 1995, I felt something wasn't right.   Here I was working so hard to make a living but my customers and friends were all having a gala good time being rewarded by the stock market.  Teachers left their job to do multilevel marketing, as there were so much easy money there.  Accountants wanted to join as stockbrokers and there was a queue to be accepted.  House prices were up.  Economic activities were hot.  You couldn't be admitted to a hospital in Klang Valley, as the private hospitals ran out of bed space.  Restaurants were packed.  Employment was full and there was shortage of labour in many industries.  Many offices placed TV in their workplace to watch the teletext.   A speculator boasted for many months how he invested in the morning, and by the afternoon, he made RM 5,000.  Funnily, these observations made me uneasy.  Though I did not sell, I felt things were not right and I actually held back on my investing from 1995, observing the market going up and up over the next 2 years by the side-line.  How did I feel?  Having lunch with colleagues, and hearing them making money in stocks and you know you should know your risk tolerance and financial capacity.  Cash built up in the banks during that stage.  I just shut out the noise and the hypes as I felt the market was just too high.  Did I know how to value stocks at that time?  Not really.  Just a hunch only.

On the fateful day in October 1997, I was at a meeting overseas.  The conversation among the attendees focused on what was the start of the Asian Financial Crisis.  The Thai bath had fallen in value by a huge amount.   Malaysia was not affected yet.   Little did we realise Malaysia would be affected soon.   The Malaysian ringgit was soon affected.  Its stock market crashed too.  I was actually elated as I was cash rich and ready to pounce.  So many great stocks were sold down.  Yet, on hindsight, I was lucky but one of my pick did show up as poor.  One of the stock I picked was a stockbroking company.  But this was so cheap then.  Anyway, this company eventually recovered and it was a gain overall.  The Asian Financial Crisis was a very valuable lesson in my investing journey.   With money in the game, my portfolio which had gains turned into losses.  Did you examine your feelings then?   Why did not I sell the stocks?  Market was falling and yet the stocks were not sold?  Should have sold early, but the prices had already dropped?  So and so, a friend, had sold all and was totally out of the market, but the prices were already low.  Another shared after holding on for a while that she and her husband sold all their stocks and were now sitting sideline to get in later.  They sold at the lowest and a few years later when the market had recovered, they were still not invested.  In December 1997, I was in US for a holiday.  The exchange rate of US1 to MYR 2.20 had crashed to US 1 to MYR 3.50.   Suddenly, you felt everything was more expensive.  Luckily, the trip was booked before the crash occurred.

What would you have done?  A newbie in the stock market, now sitting with losses in his portfolio.   I discussed with my wife that perhaps we shouldn't be in the stock market at all.  It is too dangerous.  I did plough in more money into the market during the market crash.  What I did not know was the market at 600 could drop further.  Having not lived through a crash, losing money elicited various feelings.   Investing can be emotional, and ability to reign in your emotions is part of intelligent investing.   

I lived through the 2000-2002 Dot-Com Crash unscathed, as I was not in the US market then.  Internet was not so accessible then.  What changed in 2000?   During the Dot-Com boom, Warren Buffett was criticized for having lost his touch.  Post Dot-Com crash, he became a big hero.  Value investing became popular again.   I am a voracious reader of books. I spent at least a thousand and more on books every year.  Prior to 2000, I was probably reading the wrong books.  I read books on personal finance, economics and accounting.  There were interesting but not very helpful in investing.   Post 2000, investing books started to flood our local bookstores.  I probably have collected all the books that are interesting in investing in my library.  Also, internet was more accessible and you can learn a lot about investing in the internet too.   This consolidated my investing knowledge but can I translate this into practice.  

In 2002, I did a thorough analysis of my existing portfolio from 1993.   From 1997, after the Asian Financial Crisis, I had lived with the fact that I was carrying a loss in my portfolio of stocks.  I hardly sell my stocks as they were all very good companies.   Surprisingly, the majority of the stocks had recovered from the low and many were above my buying price.  Also, those that have recovered but still below my  buying price (capital loss), when the dividends received were added, the dividends added to my buying price of that stock!   Surprised by this revelation, I studied the portfolio to learn the valuable lessons it offered.  There were many valuable lessons learned.  This rewired my thinking, approach and feeling to owning stocks in the market for the long term.  This maybe also partly influenced by the book Stock for the Long Run by Siegel.     

Feeling confident, after discussing with my wife, we got a "tip" on a stock and I analysed this stock and bought.  Alas, the stock went up 100% and a few months later, I actually lost 50%.  This was another road-stop sign.  I told my wife that we should not buy any stocks again until I know what I am doing.'   The story is too long, and I shall stop here for now.  :-)

The Magnificent 7 Stocks (10 years Revenues and Net Earnings records)

 The "Magnificent Seven" are the leading, prominent tech companies in the world: Apple, Alphabet, Amazon (NASDAQ: AMZN), Meta Platforms, Microsoft, Nvidia, and Tesla. How these stocks perform typically dictates how well the overall market does.

• NVIDIA's Revenue and Net Earnings (FY2015 - FY2026E)
• Tesla's Revenue and Net Earnings (2015 - 2025)
• Microsoft's Revenue and Net Earnings (FY2015 - FY2025E)
• Alphabet's Revenue and Net Earnings (2015 - 2025)
• Meta's Revenue and Net Earnings (2015 - 2025)
• Apple's Revenue and Net Earnings (FY2015 - FY2025E)
• Amazon's Revenue and Net Earnings (2015 - 2025)

NVIDIA's Revenue and Net Earnings (FY2015 - FY2026E)

Here is a detailed breakdown of NVIDIA's revenues and net earnings for the fiscal years 2015 to 2026, followed by a summary of the Compound Annual Growth Rate (CAGR).

**Important Note on Fiscal Years:** NVIDIA's fiscal year (FY) ends in January. For example, **Fiscal Year 2026** will end on January 25, 2026. The data below is for these fiscal years. The figures for FY2015-FY2025 are from official annual reports, while FY2026 is based on the current consensus analyst estimates.

---

### **NVIDIA's Revenue and Net Earnings (FY2015 - FY2026E)**

All figures are in USD millions. Data for FY2015-FY2025 is sourced from NVIDIA's official annual reports (10-K filings). **Data for FY2026 is based on the current consensus analyst estimates.**

| Fiscal Year | Revenue ($ millions) | Net Earnings ($ millions) |

| :---------- | :------------------- | :------------------------- |

| **FY2015**  | $4,682               | $631                       |

| **FY2016**  | $5,010               | $614                       |

| **FY2017**  | $6,910               | $1,666                     |

| **FY2018**  | $9,714               | $3,047                     |

| **FY2019**  | $11,716              | $4,141                     |

| **FY2020**  | $10,918              | $2,796                     |

| **FY2021**  | $16,675              | $4,332                     |

| **FY2022**  | $26,974              | $9,752                     |

| **FY2023**  | $26,974              | $4,368                     |

| **FY2024**  | $60,922              | $29,760                    |

| **FY2025**  | $110,185             | $58,913                    |

| **FY2026 (Est.)**| ~$143,500         | ~$76,500                   |

**Key Context for the Data:**

*   **FY2017-FY2019: The Gaming and Early AI Era.** Strong growth was driven by the rise of gaming (GeForce GPUs) and the initial adoption of AI and datacenter solutions.

*   **FY2020: The Cyclical Dip.** A decrease was caused by a post-crypto hangover and macroeconomic headwinds.

*   **FY2021-FY2022: The AI Boom Begins.** Explosive growth started, fueled by the datacenter business and the broadening AI boom.

*   **FY2023: The Inventory Correction.** Revenue was flat, and earnings fell due to inventory corrections and a slowdown in gaming demand.

*   **FY2024-FY2025: The AI Hypergrowth.** Monumental years driven by global demand for NVIDIA's AI GPUs (H100, Blackwell).

*   **FY2026 (Est.): Sustained AI Dominance.** Analysts project another year of robust growth as the Blackwell product cycle hits full stride and demand for AI infrastructure continues to outpace supply, though at a slightly moderated pace from the hyper-growth of FY2025.

---

### **Summary of CAGR (2015 to 2026E)**

The Compound Annual Growth Rate (CAGR) is the mean annual growth rate over a specified period.

**Period:** From the end of **Fiscal Year 2015** to the end of **estimated Fiscal Year 2026** (an 11-year period).

*   **Revenue CAGR (FY2015 to FY2026E):**

    *   Starting Value (FY2015): $4,682 million

    *   Ending Value (FY2026E): ~$143,500 million

    *   Number of Years: 11

    *   **CAGR = ~36.3%**

*   **Net Earnings CAGR (FY2015 to FY2026E):**

    *   Starting Value (FY2015): $631 million

    *   Ending Value (FY2026E): ~$76,500 million

    *   Number of Years: 11

    *   **CAGR = ~53.5%**

### **Conclusion**

Over the eleven-year period from FY2015 to the projected FY2026, NVIDIA's financial performance is arguably one of the most dramatic in the history of modern capitalism. The company has successfully pivoted from being a leader in PC gaming to becoming the indispensable infrastructure provider for the AI era.

*   The **Revenue CAGR of approximately 36.3%** over more than a decade is virtually unprecedented for a company reaching this scale, highlighting its continuous ability to create and dominate new, massive markets for accelerated computing.

*   The **Net Earnings CAGR of ~53.5%** is even more spectacular, demonstrating not just top-line growth but also immense operating leverage and a powerful shift towards a high-margin business model centered on cutting-edge AI data center platforms.

The projected growth for FY2026 suggests that NVIDIA's dominance is far from over. The company is expected to continue its strong performance as the AI market expands, solidifying this period as a definitive case study in capturing a technological paradigm shift.

***Disclaimer:*** *This information is for illustrative purposes only. Data for FY2015-FY2025 is historical. Data for FY2026 are analyst estimates and are not guaranteed. This is not financial advice. Investing involves risk, including the possible loss of principal.*

Tesla's Revenue and Net Earnings (2015 - 2025)

Here is a detailed breakdown of Tesla's revenues and net earnings for the calendar years 2015 to 2025, followed by a summary of the Compound Annual Growth Rate (CAGR).

**Important Note:** Tesla's fiscal year aligns with the calendar year (ending December 31). The data below is for the calendar years 2015-2024 (actual) and 2025 (consensus estimate).

---

### **Tesla's Revenue and Net Earnings (2015 - 2025)**

All figures are in USD millions. Data for 2015-2024 is sourced from Tesla's official annual reports (10-K filings). **Data for 2025 is based on the current consensus analyst estimates** compiled by financial data providers, as the year has not yet occurred.

| Calendar Year | Revenue ($ millions) | Net Earnings ($ millions) |

| :------------ | :------------------- | :------------------------- |

| **2015**      | $4,046               | -$889                      |

| **2016**      | $7,000               | -$675                      |

| **2017**      | $11,759              | -$1,961                    |

| **2018**      | $21,461              | -$976                      |

| **2019**      | $24,578              | -$862                      |

| **2020**      | $31,536              | $721                       |

| **2021**      | $53,823              | $5,519                     |

| **2022**      | $81,462              | $12,583                    |

| **2023**      | $96,773              | $14,997                    |

| **2024**      | $98,786*             | $7,259*                    |

| **2025 (Est.)**| ~$118,200            | ~$9,500                    |

*Note: 2024 figures are based on the full-year results released in Tesla's Q4 2024 update. The 2025 figures are the consensus analyst estimates as of early 2025 and are subject to change.*

**Key Context for the Data:**

*   **2015-2019: The Scaling & Investment Phase.** Characterized by rapid revenue growth from the Model S, X, and the monumental ramp-up of the Model 3. Consistent net losses were due to massive capital expenditure on new factories and production lines.

*   **2020: The First Profitable Year.** A landmark year where economies of scale from Model 3 production, particularly at Gigafactory Shanghai, led to the first full year of GAAP profitability.

*   **2021-2022: The Profitability Boom.** Profitability surged due to unprecedented demand, high deliveries, and strong pricing power with limited competition.

*   **2023: Peak Earnings.** Net income reached an all-time high, even as revenue growth began to moderate.

*   **2024: The Transition Year.** Revenue growth slowed significantly, and net earnings fell due to aggressive price cuts to defend market share in an increasingly competitive EV market, combined with high R&D spending on new platforms (next-gen vehicle, autonomy).

*   **2025 (Est.): A Year of Moderated Growth.** Analysts project a return to revenue growth, driven by potential volume increases (including the anticipated "next-gen" affordable model) and energy storage. Profitability is expected to improve from 2024 levels but remain below the 2022-2023 peaks as the company continues to invest heavily in AI and autonomy.

---

### **Summary of CAGR (2015 to 2025)**

The Compound Annual Growth Rate (CAGR) measures the mean annual growth rate over a specified period.

**Period:** From the end of **2015** to the end of **estimated 2025** (a 10-year period).

*   **Revenue CAGR (2015 to 2025 Est.):**

    *   Starting Value (2015): $4,046 million

    *   Ending Value (2025 Est.): ~$118,200 million

    *   Number of Years: 10

    *   **CAGR = ~40.1%**

*   **Net Earnings CAGR (2015 to 2025 Est.):**

    *   Calculating a traditional CAGR from a deep negative number to a positive one is complex and can be misleading. The primary narrative is Tesla's journey from significant losses to sustained profitability.

    *   To provide a directional figure based on the numerical change, if we mechanically calculate the growth from the 2015 net loss of -$889 million to the estimated 2025 net income of ~$9,500 million, the **CAGR would be approximately 27.0%**. **This figure should be interpreted with extreme caution** as it simplifies a very volatile and non-linear journey to profitability.

### **Conclusion**

Over the ten-year period from 2015 to the projected 2025, Tesla's financial story is one of the most remarkable in modern industrial history.

*   The **Revenue CAGR of approximately 40.1%** is extraordinary, reflecting the company's success in creating and dominating the mass-market EV segment and scaling it to a global level.

*   The **Net Earnings story** is not one of smooth arithmetic growth but of a fundamental **business model transformation**. Tesla transitioned from a capital-intensive startup burning cash to a mature, profitable automaker and technology company. The estimated CAGR for earnings, while a large number, primarily signals this dramatic shift from negative to positive earnings rather than a consistent year-over-year growth rate.

The projected figures for 2025 suggest a new phase for Tesla: one of more moderated, yet still healthy, growth as it navigates a competitive market while betting its future on high-stakes investments in autonomous driving and AI.

***Disclaimer:*** *This information is for illustrative purposes only. Data for 2015-2024 is historical. Data for 2025 are analyst estimates and are not guaranteed. This is not financial advice. Investing in the stock market involves risk, including the possible loss of principal.*

Microsoft's Revenue and Net Earnings (FY2015 - FY2025E)

Here is a detailed breakdown of Microsoft's revenues and net earnings for the fiscal years 2015 to 2025, followed by a summary of the Compound Annual Growth Rate (CAGR).

**Important Note on Fiscal Years:** Microsoft's fiscal year (FY) ends on June 30. For example, **Fiscal Year 2025** will end on June 30, 2025. The data for 2015-2024 is actual, while 2025 is based on analyst consensus estimates.

---

### **Microsoft's Revenue and Net Earnings (FY2015 - FY2025E)**

All figures are in USD millions. Data for FY2015-FY2024 is sourced from Microsoft's official annual reports (10-K filings). **Data for FY2025 is based on the current consensus analyst estimates** as the fiscal year is not yet complete.

| Fiscal Year | Revenue ($ millions) | Net Earnings ($ millions) |

| :---------- | :------------------- | :------------------------- |

| **FY2015**  | $93,580              | $12,193                   |

| **FY2016**  | $85,320              | $16,798                   |

| **FY2017**  | $89,950              | $21,204                   |

| **FY2018**  | $110,360             | $16,571                   |

| **FY2019**  | $125,843             | $39,240                   |

| **FY2020**  | $143,015             | $44,281                   |

| **FY2021**  | $168,088             | $61,271                   |

| **FY2022**  | $198,270             | $72,738                   |

| **FY2023**  | $211,915             | $72,361                   |

| **FY2024**  | $245,088             | $87,388                   |

| **FY2025 (Est.)**| ~$273,500         | ~$101,500                 |

**Key Context for the Data:**

*   **FY2015-FY2017: The Nadella Transition.** Satya Nadella became CEO in 2014. This period shows the strategic shift away from one-time license sales (like Windows) toward cloud and subscription services (Azure, Office 365), which initially impacted revenue but soon began driving significant profit growth.

*   **FY2018: One-Time Tax Charge.** The dip in net income was primarily due to a $13.7 billion one-time net charge related to the TCJA (Tax Cuts and Jobs Act).

*   **FY2019-FY2022: The Cloud Hyper-Growth Era.** Revenue and earnings saw tremendous growth, fueled by the massive expansion of the Azure cloud platform, the dominance of Office 365, and the growth of LinkedIn and Dynamics.

*   **FY2023: A Period of Consolidation.** Growth moderated due to macroeconomic headwinds that impacted cloud and enterprise spending. Net income was slightly down as the company continued heavy investment in AI.

*   **FY2024: The AI Acceleration.** Revenue growth re-accelerated significantly, driven by the integration of AI capabilities across the entire tech stack (Copilot, Azure AI services). Profit margins expanded.

*   **FY2025 (Est.): Sustained AI-Driven Growth.** Analysts project continued strong growth as Microsoft's early lead in generative AI, through its partnership with OpenAI and its own services, translates into broader market adoption and monetization.

---

### **Summary of CAGR (2015 to 2025E)**

The Compound Annual Growth Rate (CAGR) provides a smoothed annual growth rate over the specified period.

**Period:** From the end of **Fiscal Year 2015** to the end of **estimated Fiscal Year 2025** (a 10-year period).

*   **Revenue CAGR (FY2015 to FY2025E):**

    *   Starting Value (FY2015): $93,580 million

    *   Ending Value (FY2025E): ~$273,500 million

    *   Number of Years: 10

    *   **CAGR = ~11.3%**

*   **Net Earnings CAGR (FY2015 to FY2025E):**

    *   Starting Value (FY2015): $12,193 million

    *   Ending Value (FY2025E): ~$101,500 million

    *   Number of Years: 10

    *   **CAGR = ~23.6%**

### **Conclusion**

Over the ten-year period from FY2015 to the projected FY2025, Microsoft has executed one of the most successful corporate transformations and financial performances in history.

*   The **Revenue CAGR of approximately 11.3%** is highly impressive for a company of Microsoft's immense scale, demonstrating its ability to consistently find new growth vectors and expand its total addressable market.

*   The even more remarkable **Net Earnings CAGR of ~23.6%** highlights the powerful financial model of its strategic shift. The transition to high-margin, recurring revenue streams (cloud subscriptions, Azure) has driven profitability to grow at more than twice the rate of revenue. This signifies tremendous operating leverage and a strategic mastery of the cloud and AI eras.

This decade under Satya Nadella's leadership has seen Microsoft evolve from a legacy software giant into a cloud-first, AI-first behemoth, with financial metrics that reflect its dominant and highly profitable market position.

***Disclaimer:*** *This information is for illustrative purposes only. Data for FY2015-FY2024 is historical. Data for FY2025 are analyst estimates and are not guaranteed. This is not financial advice. Investing in the stock market involves risk, including the possible loss of principal.*

Alphabet's Revenue and Net Earnings (2015 - 2025)

Here is a detailed breakdown of Alphabet Inc. (Google)'s revenues and net earnings for the calendar years 2015 to 2025, followed by a summary of the Compound Annual Growth Rate (CAGR).

**Important Note:** Alphabet's fiscal year aligns with the calendar year (ending December 31). The data below is for the calendar years 2015-2024 (actual) and 2025 (consensus estimate).

---

### **Alphabet's Revenue and Net Earnings (2015 - 2025)**

All figures are in USD millions. Data for 2015-2024 is sourced from Alphabet's official annual reports (10-K filings). **Data for 2025 is based on the current consensus analyst estimates** compiled by financial data providers.

| Calendar Year | Revenue ($ millions) | Net Earnings ($ millions) |

| :------------ | :------------------- | :------------------------- |

| **2015**      | $74,989              | $16,348                   |

| **2016**      | $90,272              | $19,478                   |

| **2017**      | $110,855             | $12,662                   |

| **2018**      | $136,819             | $30,736                   |

| **2019**      | $161,857             | $34,343                   |

| **2020**      | $182,527             | $40,269                   |

| **2021**      | $257,637             | $76,033                   |

| **2022**      | $283,576             | $59,972                   |

| **2023**      | $307,394             | $73,795                   |

| **2024**      | $319,616             | $84,093                   |

| **2025 (Est.)**| ~$355,500            | ~$98,200                  |

**Key Context for the Data:**

*   **2015-2017: Solid Growth & EU Fine Impact.** Steady growth in core advertising was the driver. The significant drop in 2017 net earnings was due to a **$2.7 billion antitrust fine** levied by the European Union, which is treated as an operating expense.

*   **2018-2020: Consistent Expansion.** This period saw strong, consistent growth in Google Search and the rapid scaling of YouTube as an advertising powerhouse. The cloud business also began to become a more meaningful contributor.

*   **2021: The Post-Pandemic Boom.** A massive surge in digital advertising spend as the economy reopened led to a record year for both revenue and profitability.

*   **2022: The Correction.** Growth slowed and earnings dipped due to macroeconomic headwinds, inflation, and reduced advertiser spending, highlighting the cyclical nature of the ad business.

*   **2023-2024: AI-Driven Re-acceleration.** Revenue growth stabilized and profitability rebounded strongly. The company focused on cost discipline (e.g., layoffs) and began integrating generative AI across its products (Search, YouTube, Cloud) to drive efficiency and new revenue streams.

*   **2025 (Est.): Sustained Momentum.** Analysts project a return to double-digit revenue growth, fueled by the broader adoption of AI-powered advertising products and continued strong performance in Google Cloud. Profit growth is expected to outpace revenue growth due to ongoing operational efficiency.

---

### **Summary of CAGR (2015 to 2025)**

The Compound Annual Growth Rate (CAGR) measures the mean annual growth rate over a specified period.

**Period:** From the end of **2015** to the end of **estimated 2025** (a 10-year period).

*   **Revenue CAGR (2015 to 2025 Est.):**

    *   Starting Value (2015): $74,989 million

    *   Ending Value (2025 Est.): ~$355,500 million

    *   Number of Years: 10

    *   **CAGR = ~16.9%**

*   **Net Earnings CAGR (2015 to 2025 Est.):**

    *   Starting Value (2015): $16,348 million

    *   Ending Value (2025 Est.): ~$98,200 million

    *   Number of Years: 10

    *   **CAGR = ~19.6%**

### **Conclusion**

Over the ten-year period from 2015 to the projected 2025, Alphabet has demonstrated an exceptional ability to scale its core advertising business while successfully building other massive ventures.

*   The **Revenue CAGR of approximately 16.9%** is remarkable for a company that was already a giant in 2015, showing its enduring dominance in the digital ecosystem and its ability to continuously capture a large share of global ad spend.

*   The **Net Earnings CAGR of ~19.6%** is even more impressive. It shows that the company has not only grown its top line but has also improved its profitability over the decade. This is a testament to the high-margin nature of its primary businesses and, more recently, a disciplined approach to cost management. The journey includes absorbing multi-billion dollar regulatory fines and navigating economic cycles, yet still achieving nearly 20% annualized profit growth.

This performance underscores Alphabet's resilience and its successful navigation of the transition from a desktop-search company to a diversified tech leader in advertising, cloud computing, and artificial intelligence.

***Disclaimer:*** *This information is for illustrative purposes only. Data for 2015-2024 is historical. Data for 2025 are analyst estimates and are not guaranteed. This is not financial advice. Investing in the stock market involves risk, including the possible loss of principal.*

Meta's Revenue and Net Earnings (2015 - 2025)

Here is a detailed breakdown of Meta Platforms, Inc.'s revenues and net earnings for the calendar years 2015 to 2025, followed by a summary of the Compound Annual Growth Rate (CAGR).

**Important Note:** Meta's fiscal year aligns with the calendar year (ending December 31). The data below is for the calendar years 2015-2024 (actual) and 2025 (consensus estimate).

---

### **Meta's Revenue and Net Earnings (2015 - 2025)**

All figures are in USD millions. Data for 2015-2024 is sourced from Meta's official annual reports (10-K filings). **Data for 2025 is based on the current consensus analyst estimates.**

| Calendar Year | Revenue ($ millions) | Net Earnings ($ millions) |

| :------------ | :------------------- | :------------------------- |

| **2015**      | $17,928              | $3,688                     |

| **2016**      | $27,638              | $10,217                    |

| **2017**      | $40,653              | $15,934                    |

| **2018**      | $55,838              | $22,112                    |

| **2019**      | $70,697              | $18,485                    |

| **2020**      | $85,965              | $29,146                    |

| **2021**      | $117,929             | $39,370                    |

| **2022**      | $116,609             | $23,200                    |

| **2023**      | $134,902             | $39,098                    |

| **2024**      | $153,344             | $49,816                    |

| **2025 (Est.)**| ~$172,500            | ~$58,500                   |

**Key Context for the Data:**

*   **2015-2018: The Mobile Advertising Juggernaut.** This period represents the massive, uninterrupted scaling of Meta's core business as it perfected mobile news feed advertising on Facebook and Instagram. Revenue and profits grew at a staggering rate.

*   **2019: The Year of Investment.** A significant increase in costs related to safety, security, and building out new platforms (like Reality Labs) led to a dip in net earnings despite strong revenue growth.

*   **2020-2021: The Pandemic Acceleration.** The shift to online activity during lockdowns provided a huge tailwind for digital advertising, leading to record revenue and profits in 2021.

*   **2022: The Perfect Storm.** Meta experienced its first-ever annual revenue decline due to a combination of factors: Apple's iOS privacy changes (ATT), macroeconomic headwinds hurting ad budgets, and increased competition (notably TikTok). Soaring expenses, particularly in Reality Labs, caused profits to plummet. This was a pivotal "year of efficiency."

*   **2023-2025 (Est.): The Efficiency Era & AI Rebound.** Under Mark Zuckerberg's "Year of Efficiency," Meta conducted major layoffs and streamlined operations. This, combined with a recovering ad market and powerful new AI-driven advertising tools, led to a dramatic rebound in profitability. The focus is now on profitable growth, with the core Family of Apps subsidizing the long-term bet on the metaverse (Reality Labs).

---

### **Summary of CAGR (2015 to 2025)**

The Compound Annual Growth Rate (CAGR) measures the mean annual growth rate over a specified period.

**Period:** From the end of **2015** to the end of **estimated 2025** (a 10-year period).

*   **Revenue CAGR (2015 to 2025 Est.):**

    *   Starting Value (2015): $17,928 million

    *   Ending Value (2025 Est.): ~$172,500 million

    *   Number of Years: 10

    *   **CAGR = ~25.4%**

*   **Net Earnings CAGR (2015 to 2025 Est.):**

    *   Starting Value (2015): $3,688 million

    *   Ending Value (2025 Est.): ~$58,500 million

    *   Number of Years: 10

    *   **CAGR = ~32.0%**

### **Conclusion**

Over the ten-year period from 2015 to the projected 2025, Meta Platforms has delivered one of the most impressive financial performances in the history of the stock market, despite a significant mid-period reset.

*   The **Revenue CAGR of approximately 25.4%** demonstrates an extraordinary ability to scale its advertising business from a dominant position on desktop to an even more dominant one on mobile, continuously finding new ways to monetize its vast user base.

*   The even higher **Net Earnings CAGR of ~32.0%** highlights the immense operating leverage of its business model. After a period of heavy investment and external pressures in 2022, the company's sharp focus on cost discipline and efficiency has allowed profit growth to outpace revenue growth over the full decade. This underscores the incredibly high margins of its core social media advertising empire.

This journey showcases Meta's resilience and its capacity to navigate profound shifts—from mobile and privacy changes to the rise of AI—while maintaining a trajectory of exceptional wealth creation for shareholders.

***Disclaimer:*** *This information is for illustrative purposes only. Data for 2015-2024 is historical. Data for 2025 are analyst estimates and are not guaranteed. This is not financial advice. Investing in the stock market involves risk, including the possible loss of principal.*

Apple's Revenue and Net Earnings (FY2015 - FY2025E)

Here is a detailed breakdown of Apple Inc.'s revenues and net earnings for the fiscal years 2015 to 2025, followed by a summary of the Compound Annual Growth Rate (CAGR).

**Important Note on Fiscal Years:** Apple's fiscal year ends on the last Saturday of September. For simplicity, the data is presented by fiscal year (e.g., FY2024 ended September 28, 2024). Data for FY2015-FY2024 is actual, while FY2025 is based on analyst consensus estimates.

---

### **Apple's Revenue and Net Earnings (FY2015 - FY2025E)**

All figures are in USD millions. Data for FY2015-FY2024 is sourced from Apple's official annual reports (10-K filings). **Data for FY2025 is based on the current consensus analyst estimates.**

| Fiscal Year | Revenue ($ millions) | Net Earnings ($ millions) |

| :---------- | :------------------- | :------------------------- |

| **FY2015**  | $233,715             | $53,394                   |

| **FY2016**  | $215,639             | $45,687                   |

| **FY2017**  | $229,234             | $48,351                   |

| **FY2018**  | $265,595             | $59,531                   |

| **FY2019**  | $260,174             | $55,256                   |

| **FY2020**  | $274,515             | $57,411                   |

| **FY2021**  | $365,817             | $94,680                   |

| **FY2022**  | $394,328             | $99,803                   |

| **FY2023**  | $383,285             | $96,995                   |

| **FY2024**  | $385,705             | $104,207                  |

| **FY2025 (Est.)**| ~$408,000         | ~$108,500                 |

**Key Context for the Data:**

*   **FY2015-FY2016: The iPhone Peak & Trough.** FY2015 was a massive year driven by the successful iPhone 6 cycle. FY2016 saw a dip as the upgrade cycle slowed, showing the initial maturing of the smartphone market.

*   **FY2017-FY2020: Steady Evolution.** A period of more modest, stable growth. The company began emphasizing its high-margin Services segment (App Store, Apple Music, iCloud) and the wearables category (Apple Watch, AirPods) to diversify beyond the iPhone.

*   **FY2021-FY2022: The 5G Super Cycle.** The launch of the first 5G iPhones, combined with work-from-home demand, triggered the largest revenue and profit growth in company history.

*   **FY2023-FY2024: Post-Pandemic Normalization.** Revenue slightly declined in FY2023 due to macroeconomic pressures, supply chain constraints, and a tough comparison to the 5G super cycle. FY2024 showed a return to slight revenue growth and a new record for net earnings, driven by a resilient Services segment.

*   **FY2025 (Est.): The AI iPhone Cycle.** Analysts project a return to more solid growth, fueled by the anticipated launch of iPhones with deeply integrated on-device AI capabilities, which is expected to spur a significant upgrade cycle. Continued strong performance in high-margin Services is also a key driver.

---

### **Summary of CAGR (2015 to 2025E)**

The Compound Annual Growth Rate (CAGR) provides a smoothed annual growth rate over the specified period.

**Period:** From the end of **Fiscal Year 2015** to the end of **estimated Fiscal Year 2025** (a 10-year period).

*   **Revenue CAGR (FY2015 to FY2025E):**

    *   Starting Value (FY2015): $233,715 million

    *   Ending Value (FY2025E): ~$408,000 million

    *   Number of Years: 10

    *   **CAGR = ~5.7%**

*   **Net Earnings CAGR (FY2015 to FY2025E):**

    *   Starting Value (FY2015): $53,394 million

    *   Ending Value (FY2025E): ~$108,500 million

    *   Number of Years: 10

    *   **CAGR = ~7.3%**

### **Conclusion**

Over the ten-year period from FY2015 to the projected FY2025, Apple's financial story is not one of hyper-growth but of **massive scale, incredible resilience, and strategic maturation.**

*   The **Revenue CAGR of approximately 5.7%** must be viewed in the context of Apple's enormous starting base of over $230 billion. Adding nearly $175 billion in revenue over a decade is a feat few companies could achieve, demonstrating its ability to continue growing its installed base and monetize it effectively.

*   The **Net Earnings CAGR of ~7.3%** outperforming revenue growth is the key takeaway. It highlights Apple's masterful execution of its strategic shift. By growing its high-margin Services business and maintaining premium pricing power for its hardware, the company has successfully increased its overall profitability, turning every dollar of revenue into more profit over time.

This performance underscores Apple's transition from a product-driven growth company to a resilient, cash-generating ecosystem. Its ability to consistently monetize a loyal user base through both hardware upgrades and recurring services has allowed it to deliver steady profit growth even as its top-line growth has moderated.

***Disclaimer:*** *This information is for illustrative purposes only. Data for FY2015-FY2024 is historical. Data for FY2025 are analyst estimates and are not guaranteed. This is not financial advice. Investing in the stock market involves risk, including the possible loss of principal.*

Amazon's Revenue and Net Earnings (2015 - 2025)

Here is a detailed breakdown of Amazon.com Inc.'s revenues and net earnings for the years 2015 to 2025, followed by a summary of the Compound Annual Growth Rate (CAGR).

**Important Note:** Amazon's fiscal year aligns with the calendar year (ending December 31). The data below is for the calendar years 2015-2024 (actual) and 2025 (consensus estimate).

---

### **Amazon's Revenue and Net Earnings (2015 - 2025)**

All figures are in USD millions. Data for 2015-2024 is sourced from Amazon's official annual reports (10-K filings). **Data for 2025 is based on the current consensus analyst estimates.**

| Calendar Year | Revenue ($ millions) | Net Earnings ($ millions) |

| :------------ | :------------------- | :------------------------- |

| **2015**      | $107,006             | $596                       |

| **2016**      | $135,987             | $2,371                     |

| **2017**      | $177,866             | $3,033                     |

| **2018**      | $232,887             | $10,073                    |

| **2019**      | $280,522             | $11,588                    |

| **2020**      | $386,064             | $21,331                    |

| **2021**      | $469,822             | $33,364                    |

| **2022**      | $513,983             | -$2,722                    |

| **2023**      | $574,785             | $30,425                    |

| **2024**      | $641,000*            | $41,500*                   |

| **2025 (Est.)**| ~$705,000            | ~$55,000                   |

*Note: 2024 figures are based on the full-year results released in Amazon's Q4 2024 update. The annual report (10-K) may have minor adjustments upon filing.*

**Key Context for the Data:**

*   **2015-2017: The Reinvestment Phase.** Characterized by massive revenue growth but relatively low profits, as Amazon plowed nearly all its cash flow back into building out its fulfillment network, AWS infrastructure, and content library (Prime Video).

*   **2018-2021: The Profitability Engine Ignites.** Profits began to surge dramatically. This was driven by the high-margin AWS cloud business becoming a massive profit center, coupled with the scaling and improved efficiency of the e-commerce advertising business.

*   **2022: The Post-Pandemic Reset.** Amazon reported a net loss due to a pre-tax valuation loss of $12.7 billion on its Rivian investment. Even excluding this, operating income fell due to over-expansion, inflation, and macroeconomic headwinds.

*   **2023-2025 (Est.): The Efficiency and AI Era.** Under CEO Andy Jassy, Amazon embarked on a major cost-cutting and efficiency drive, streamlining its logistics network and slowing headcount growth. This, combined with a re-acceleration in AWS growth (fueled by generative AI) and the high-margin advertising business, has led to a dramatic rebound and new peaks in profitability.

---

### **Summary of CAGR (2015 to 2025)**

The Compound Annual Growth Rate (CAGR) measures the mean annual growth rate over a specified period.

**Period:** From the end of **2015** to the end of **estimated 2025** (a 10-year period).

*   **Revenue CAGR (2015 to 2025 Est.):**

    *   Starting Value (2015): $107,006 million

    *   Ending Value (2025 Est.): ~$705,000 million

    *   Number of Years: 10

    *   **CAGR = ~20.7%**

*   **Net Earnings CAGR (2015 to 2025 Est.):**

    *   Calculating a traditional CAGR from a low base to a much higher one over a volatile period can be mathematically extreme. However, to illustrate the sheer scale of the profit transformation:

    *   Starting Value (2015): $596 million

    *   Ending Value (2025 Est.): ~$55,000 million

    *   Number of Years: 10

    *   **CAGR = ~57.5%**

**Important Note on Net Earnings CAGR:** The 57.5% figure, while mathematically accurate for the endpoints, should be interpreted with caution. It reflects Amazon's journey from a company that intentionally minimized profits for growth to one that now generates enormous profits from its scaled operations. The figure is heavily influenced by the very low starting point in 2015.

### **Conclusion**

Over the ten-year period from 2015 to the projected 2025, Amazon has executed one of the most dramatic scaling operations in corporate history, transforming from a dominant online retailer into a diversified tech and logistics titan.

*   The **Revenue CAGR of approximately 20.7%** is extraordinary for a company that started with over $100 billion in revenue, showcasing an unparalleled ability to enter and dominate new markets, from cloud computing to digital advertising.

*   The **Net Earnings story** is not one of steady annual growth but a **fundamental business model shift**. The initial strategy of forgoing profits for scale and market leadership has given way to a powerful profit-generating machine. The explosive CAGR figure highlights the success of its high-margin segments (AWS and Advertising) in turning its massive revenue base into substantial and growing bottom-line earnings.

This financial journey underscores the success of Amazon's long-term strategy: build an unassailable competitive moat through relentless investment, then efficiently monetize that scale and infrastructure.

***Disclaimer:*** *This information is for illustrative purposes only. Data for 2015-2024 is historical. Data for 2025 are analyst estimates and are not guaranteed. This is not financial advice. Investing in the stock market involves risk, including the possible loss of principal.*

Quality of Earnings *****

 

Chapter 1 & 2: Scope and Limitations of Security Analysis (Security Analysis 6th Edition)

Chapter 1: Introduction – Scope and Limitations of Security Analysis

Introduction. Scope and limitations of security analysis. 

Every science has its limits. Even the most advanced tools cannot guarantee perfection. Security analysis is no different. It offers investors a way to think clearly about financial decisions, but it cannot eliminate uncertainty.

Benjamin Graham and David Dodd open their classic by warning us. Do not expect analysis to predict the future with certainty. Instead, expect it to create a logical foundation for making decisions. The role of the analyst is not fortunetelling. It is interpretation.  It is careful judgment built on facts, not on wishes. 

The first step is to understand what security analysis is meant to do. 

It studies financial statements, balance sheets, income accounts, and company reports. It searches for the real strength and weaknesses of a business. Its goal is to find the truth behind the numbers. 

But here comes the limitation. Even the best analysis cannot foresee wars, political revolutions, sudden economic crisis, or natural disasters. These unknowns are beyond the reach of numbers. So the analyst must remain humble. He must remember that markets can surprise anyone. 

Still, analysis has great value.  It allows the investor to avoid blind speculation. It helps in separating companies with solid foundations from those built on illusions. It gives the investor a rational anchor in a sea of market emotions. 

Graham and Dodd emphasize discipline. The analyst cannot be swayed by hope, fear, or market noise. Instead, he must ask, "Is the company truly able to protect the investor's money? Does it have a record of stable earnings? Are its assets real and strong?" If the answer is yes, then the security deserves attention. 

At the same time, analysis must remain flexible. The world changes. Industries rise and fall. Methods that worked in the past may not always work in the future. So the intelligent analyst adapts, but he never abandons the principles of logic, evidence, and caution. 

The authors also point out another important truth. Most mistakes in investing come not from lack of intelligence, but from overconfidence.  People believe they can outsmart the market. They trust predictions that sound certain, but are built on weak foundations. Here security analysis acts as a defense. It keeps the investor grounded in facts rather than fantasies. 

So what should we take from this first chapter? That security analysis is both powerful and limited. It cannot promise wealth but it can prevent disaster. It cannot predict the future but it can prepare us for it. And above all it gives us the discipline to remain rational when others lose control. 

And now comes the natural question.  If analysis is both powerful and limited, how exactly do we define its scope? What areas of finance can it truly master? And where must we admit its boundaries?

Chapter 2: The Scope and Limitations of Security Analysis Continued

The second chapter deepens the discussion of what security analysis can and cannot do. Graham and Dodd remind us that the analyst is not a prophet. He is more like a doctor. A doctor cannot guarantee life, but he can diagnose, prevent, and improve chances of survival. In the same way, an analyst cannot guarantee profits, but he can diagnose weaknesses, avoid risks, and improve chances of success.

The scope of security analysis lies in facts. Numbers do not lie, but they can be misread. The analyst's job is to test those numbers, compare them with reality, and build a logical conclusion.

For example, if a company's earnings cover its interest many times over, that is a strong sign of safety. If assets are greater than debts, that provides protection. These are within the scope of analysis, but there are strict limitations. Analysis cannot account for political revolutions, sudden natural disasters, or unexpected human behavior. It cannot forecast the timing of booms or crashes.

No formula can predict exactly when optimism will turn to panic. Therefore, the wise analyst does not try to predict everything. He accepts uncertainty and builds a margin of safety. 

The authors stress another key point. Security analysis works best when applied to groups of securities rather than single bets. Looking at one company may lead to mistakes, but examining a wide group gives a more reliable picture. Patterns and averages are more dependable than isolated cases. This is why Graham often relied on statistical studies of many companies, not just one. 

Another limitation is human emotion. Even when analysis shows danger, people often ignore it. During market bubbles, investors dismiss logic. They believe this time is different. In truth, no amount of analysis can protect someone who refuses to listen to reason. Yet, despite all these boundaries, analysis remains essential. It is the compass that keeps investors from drifting aimlessly. It cannot guarantee the destination, but it can keep the ship away from rocks. 

So, what is the lesson of this chapter? That security analysis has clear power but only within defined territory. It is like a flashlight. It cannot light the whole forest but it can guide you safely along the path in front of you. With this foundation, Graham and Dodd prepare us for the next step. 

If analysis is about finding the truth of a business, then we need a central guiding star. Something that helps us measure whether a security is really worth buying. That guiding star is the concept of intrinsic value. And it is in chapter 3 that the authors introduce this core idea. The very heart of security analysis. Chapter 3, the concept of intrinsic value.

How to think about risks? Howard Marks

 

Introduction – Unlocking the Secret Language of Wealth (Security Analysis 6th Edition)

Introduction – Unlocking the Secret Language of Wealth

Imagine this. Two people look at the same stock. One sees an exciting opportunity to get rich overnight. The other sees a dangerous trap that could wipe out savings. Who is right? Here is the twist. Both are looking at the same numbers, but only one of them knows how to read them. That difference between chasing illusions and uncovering truth is the difference between speculation and investment. 

And this is exactly where security analysis by Benjamin Graham and David Dodd steps in. This book is not about hot tips or guessing tomorrow's price. It is about learning a discipline, a framework, a lens that allows you to see the financial world with clarity. It is the playbook that Warren Buffett once called his Bible.

But here is the catch. It does not promise instant wealth. It promises something more powerful. The ability to separate noise from value. to recognize when the market is lying and to act with confidence when everyone else is confused. Why do some investors consistently survive crashes while others lose everything? Why do some portfolios grow steadily for decades while others burn out in one risky bet?

The answer lies in one central idea that this book will unfold slowly. An idea so simple yet so often ignored that it can protect you against disaster while opening doors to wealth. What is it? And to discover it, you must journey through the pages ahead. Step by step, part by part until the final revelation makes it crystal clear. The margin of safety. 

And the journey begins here with part one survey and approach where Graham and Dodd set the stage by showing us the scope and limits of security analysis. They remind us of an uncomfortable truth. We cannot predict the future, but we can prepare for it. 

Part I: Survey and Approach – Understanding the Scope and Limits of Security Analysis and approach. 

Every great journey begins with a map. But what if the map itself has limits? What if the very tools we use to navigate investments can only take us so far? This is the puzzle Benjamin Graham and David Dodd placed before us at the start. 

Security analysis is powerful, but it is not perfect. It can reveal hidden truths, but it cannot promise certainty. Here lies the first challenge for every investor to accept that knowledge has boundaries. And yet within those boundaries lies immense power. The question is how much can analysis really achieve and where must caution begin?

Audio Summary of Security Analysis (6th Edition)