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  • Oil And Gas Investors Can Spot Good Value From Recent Insider Buying Action [View article]
    Thank you for your comment, user158.

    Serenity's comment was about Buffett and Chesapeake Energy Corp (CHK), both of which are discussed in this article.

    Is there something specific you dislike - or would like changed - about the website?
    Aug 27, 2015. 11:50 AM | Likes Like |Link to Comment
  • What Does Buffett's Favorite Indicator Say About The Bull Market? [View article]
    Warren Buffett wrote the preface to Benjamin Graham's book - The Intelligent Investor - in which he calls it "by far the best book about investing ever written."

    Graham was a scholar and professional investor who mentored investing legends such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

    Graham's first recommended strategy - for novice investors - was to invest in the stocks comprising an Index.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the Graham ratings for Starbucks Corp (SBUX), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    Starbucks Corp (SBUX) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 3,540.00%
    Current Assets ÷ [2 x Current Liabilities]: 68.59%
    Net Current Assets ÷ Long Term Debt: 55.18%
    Equity ÷ Debt (for Utilities and Financials): 96.19%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 30.00%
    Earnings Growth (100% ⇒ 30% Growth): 155.87%
    Graham Number ÷ Previous Close: 15.36%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Most of Buffett's investments are what Graham defined as Special Situations.
    Aug 25, 2015. 05:24 PM | Likes Like |Link to Comment
  • Oil And Gas Investors Can Spot Good Value From Recent Insider Buying Action [View article]
    Benjamin Graham was a scholar and professional investor who mentored investing legends such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

    Warren Buffett wrote the preface to Graham's book - The Intelligent Investor - in which he calls it "by far the best book about investing ever written."

    Graham's first recommended strategy - for novice investors - was to invest in the stocks comprising an Index.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the Graham ratings for Chesapeake Energy Corp (CHK), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    Chesapeake Energy Corp (CHK) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 4,190.00%
    Current Assets ÷ [2 x Current Liabilities]: 63.69%
    Net Current Assets ÷ Long Term Debt: 14.39%
    Equity ÷ Debt (for Utilities and Financials): 70.88%
    Earnings Stability (100% ⇒ 10 Years): 20.00%
    Dividend Record (100% ⇒ 20 Years): 70.00%
    Earnings Growth (100% ⇒ 30% Growth): 30.09%
    Graham Number ÷ Previous Close: 378.07%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Most of Buffett's investments are what Graham defined as Special Situations.
    Aug 25, 2015. 05:21 PM | Likes Like |Link to Comment
  • Get Your Smart Beta Here! Dividend Growth Stocks As 'Strategic Beta' Investments [View article]
    Hello "Placebo Investment Advice",

    Thank you for your reply!

    As mentioned in the first comment, Benjamin Graham's first recommended investment strategy was to invest in the stocks comprising an Index. Graham even pointed out that the S&P500 tends to outperform the Dow.

    So when Warren Buffett recommends a low cost S&P 500 tracking index fund, he is simply outlining another application of Benjamin Graham's Value Investing principles.

    Serenity's own article from 2012 (http://seekingalpha.co...) recommends a Vanguard S&P500 index fund as a good application of Graham's first strategy.

    Buffett also explains in "The Superinvestors of Graham-and-Doddsville" how the size of his portfolio is also his biggest handicap ("Size - The Anchor of Performance").

    Most of Buffett's investments are thus based on Graham's "Special Situations" strategy, out of sheer necessity.

    Regular investors can actually do better percentages by simply following the more automated strategies in Graham's framework - Defensive, Enterprising and NCAV stocks, and Index funds.
    Aug 23, 2015. 07:45 AM | 1 Like Like |Link to Comment
  • Top 10 Dividend Yields For Intelligent Investors [View article]
    The ModernGraham website cites the following formula as one of the Graham methods applied:
    Intrinsic Value = EPS x (8.5 + 2xGrowth)

    Benjamin Graham actually gave several warnings with this formula and only used it to demonstrate that the market's growth rate expectations were never reliable. But due to an omission in recent editions of The Intelligent Investor, this formula is often mistakenly used today to value stocks instead of Graham's actual (and more thorough) methods.

    Article: Understanding The Benjamin Graham Formula Correctly (http://seekingalpha.co...) discusses the issue in detail.

    Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the actual Graham ratings for KLA-Tencor Corp (KLAC), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    KLA-Tencor Corp (KLAC) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 558.00%
    Current Assets ÷ [2 x Current Liabilities]: 255.97%
    Net Current Assets ÷ Long Term Debt: 493.45%
    Equity ÷ Debt (for Utilities and Financials): 196.36%
    Earnings Stability (100% ⇒ 10 Years): 50.00%
    Dividend Record (100% ⇒ 20 Years): 55.00%
    Earnings Growth (100% ⇒ 30% Growth): 126.64%
    Graham Number ÷ Previous Close: 90.93%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.
    Aug 22, 2015. 05:08 PM | 5 Likes Like |Link to Comment
  • LeapFrog: Bad News At Any Price? [View article]
    Benjamin Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    Net Current Asset Value / NCAV stocks are also known as Net-Nets or cigar-butt stocks today. Graham did recommend these stocks for Enterprising investors, but with additional qualitative checks and diversification requirements.

    Graham recommended in The Intelligent Investor that an NCAV stock also have a positive EPS figure to be eligible for investment.

    The positive EPS requirement is the qualitative check for NCAV stocks; and is - if you think about it - a very logical rule. There's really not much point buying a stock for its current assets (cash equivalents), if the company's losing money.

    Since NCAV stocks undergo the least qualitative tests of all of Graham's categories, they also require the most diversification. Graham recommended a portfolio size of 30 for NCAV stocks; or in other words, not more than 3.3% of one's portfolio per NCAV stock.
    Aug 22, 2015. 05:05 PM | 1 Like Like |Link to Comment
  • Get Your Smart Beta Here! Dividend Growth Stocks As 'Strategic Beta' Investments [View article]
    Benjamin Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    Warren Buffett once gave a talk at Columbia Business School describing how Graham's record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham's principles are everlasting. The talk is now known as "The Superinvestors of Graham-and-Doddsville".

    In the talk, Buffett said:
    "Our Graham & Dodd investors, needless to say, do not discuss beta, the capital asset pricing model, or covariance in returns among securities. These are not subjects of any interest to them. In fact, most of them would have difficulty defining those terms. The investors simply focus on two variables: price and value."
    Aug 22, 2015. 04:58 PM | 3 Likes Like |Link to Comment
  • Is Office Depot A Buy As A Merger Arbitrage Opportunity? [View article]
    Benjamin Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the Graham ratings for Office Depot Inc (ODP), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    Office Depot Inc (ODP) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 3,220.00%
    Current Assets ÷ [2 x Current Liabilities]: 72.90%
    Net Current Assets ÷ Long Term Debt: 87.57%
    Equity ÷ Debt (for Utilities and Financials): 31.04%
    Earnings Stability (100% ⇒ 10 Years): 0.00%
    Dividend Record (100% ⇒ 20 Years): 0.00%
    Earnings Growth (100% ⇒ 30% Growth): 0.00%
    Graham Number ÷ Previous Close: 0.00%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Most of Buffett's investments are what Graham defined as Special Situations.

    Graham classified Arbitrage operations under Special Situations, but also wrote:
    "The exploitation of special situations is a technical branch of investment which requires a somewhat unusual mentality and equipment. Probably only a small percentage of our enterprising investors are likely to engage in it"

    More specifically, about Workout or Arbitrage opportunities, he wrote:
    "This has become more than ever a field for professionals, with the requisite experience and judgment."
    Aug 18, 2015. 04:16 PM | Likes Like |Link to Comment
  • Is Warren Buffett's Precision Castpart Deal A Merger-Arb Opportunity? [View article]
    Benjamin Graham was a scholar and professional investor who mentored investing legends such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

    Warren Buffett wrote the preface to Graham's book - The Intelligent Investor - in which he calls it "by far the best book about investing ever written."

    Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the Graham ratings for Precision Castparts Corp (PCP), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    Precision Castparts Corp (PCP) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 2,020.00%
    Current Assets ÷ [2 x Current Liabilities]: 171.24%
    Net Current Assets ÷ Long Term Debt: 109.25%
    Equity ÷ Debt (for Utilities and Financials): 158.14%
    Earnings Stability (100% ⇒ 10 Years): 90.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 214.34%
    Graham Number ÷ Previous Close: 58.13%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Most of Buffett's investments are what Graham defined as Special Situations.

    Graham classified Arbitrage operations under Special Situations, but also wrote:
    "The exploitation of special situations is a technical branch of investment which requires a somewhat unusual mentality and equipment. Probably only a small percentage of our enterprising investors are likely to engage in it"

    More specifically, about Workout or Arbitrage opportunities, he wrote:
    "This has become more than ever a field for professionals, with the requisite experience and judgment."
    Aug 14, 2015. 03:36 PM | 1 Like Like |Link to Comment
  • Should You Invest With Warren Buffett In Coca-Cola? [View article]
    Benjamin Graham was a scholar and professional investor who mentored investing legends such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

    Warren Buffett wrote the preface to Graham's book - The Intelligent Investor - in which he calls it "by far the best book about investing ever written."

    Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the Graham ratings for Coca-Cola Co (KO), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    Coca-Cola Co (KO) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 9,226.00%
    Current Assets ÷ [2 x Current Liabilities]: 50.95%
    Net Current Assets ÷ Long Term Debt: 3.21%
    Equity ÷ Debt (for Utilities and Financials): 49.14%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 125.79%
    Graham Number ÷ Previous Close: 41.23%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Most of Buffett's investments are what Graham defined as Special Situations.
    Aug 13, 2015. 04:23 PM | Likes Like |Link to Comment
  • General Motors Back To An Attractive Value, Warren Buffett Buys In [View article]
    Benjamin Graham was a scholar and professional investor who mentored investing legends such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

    Warren Buffett wrote the preface to Graham's book - The Intelligent Investor - in which he calls it "by far the best book about investing ever written."

    Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the Graham ratings for General Motors Co (GM), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    General Motors Co (GM) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 30,846.00%
    Current Assets ÷ [2 x Current Liabilities]: 63.67%
    Net Current Assets ÷ Long Term Debt: 56.41%
    Equity ÷ Debt (for Utilities and Financials): 24.93%
    Earnings Stability (100% ⇒ 10 Years): 60.00%
    Dividend Record (100% ⇒ 20 Years): 10.00%
    Earnings Growth (100% ⇒ 30% Growth): 0.00%
    Graham Number ÷ Previous Close: 114.97%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Most of Buffett's investments are what Graham defined as Special Situations.
    Aug 12, 2015. 02:56 PM | Likes Like |Link to Comment
  • Coal Stocks: A Cigar Butt Play, But Not Sound For The Long Term [View article]
    Please note that Net Current Asset Value stocks (or NCAV/cigar-butt stocks) are the most well-known of Benjamin Graham's strategies, and the source of the general misconception that Graham only recommended cheap stocks.

    But Graham actually recommended Index, Defensive and Enterprising stocks before NCAV stocks and all were allowed higher Quantitative valuations and required greater Qualitative checks.

    Graham did advocate paying more for Quality.
    His only prerequisite was that there be the Margin of Safety between price and value, whether the value be Qualitative or Quantitative.

    Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the Graham ratings for Cloud Peak Energy Inc (CLD), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    Cloud Peak Energy Inc (CLD) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 264.00%
    Current Assets ÷ [2 x Current Liabilities]: 64.86%
    Net Current Assets ÷ Long Term Debt: 17.67%
    Equity ÷ Debt (for Utilities and Financials): 101.49%
    Earnings Stability (100% ⇒ 10 Years): 70.00%
    Dividend Record (100% ⇒ 20 Years): 0.00%
    Earnings Growth (100% ⇒ 30% Growth): 0.00%
    Graham Number ÷ Previous Close: 896.09%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Most of Buffett's investments are what Graham defined as Special Situations.
    Aug 12, 2015. 11:37 AM | 1 Like Like |Link to Comment
  • Textainer Group Holdings: A 6% Yielder That's Relatively Cheap, Too [View article]
    Hello talombard,

    If you're referring to David Fish's list of Dividend Champions, Contenders, and Challengers; yes, it does appear so.

    In the "notes" sheet of that Excel workbook, you can see:
    "+/-% vs. Graham - calculates the premium or discount that the current price represents, compared with the "Graham number," which is an estimation of "fair value" or what Benjamin Graham said would be the most an investor should pay for a share of the company's stock. "

    However, that is a severe oversimplification of Graham's investment framework which is described in more detail in the previous comment.
    The Graham Number covers only 2 of the 17 rules in Graham's investment framework.
    Aug 10, 2015. 05:40 PM | 1 Like Like |Link to Comment
  • Teradata Corporation Is A Great Company At A Fair Price [View article]
    Hello DRIPN',

    The Graham Ratings in the previous comment did not clear Teradata Corp for investment.
    Aug 7, 2015. 10:07 AM | Likes Like |Link to Comment
  • Like Exxon, Top Canadian Oil Sands Companies Offer Tremendous Value [View article]
    Benjamin Graham was a scholar and professional investor who mentored investing legends such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

    Warren Buffett wrote the preface to Graham's book - The Intelligent Investor - in which he calls it "by far the best book about investing ever written."

    Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
    For professional investors, Graham described various special situations or "workouts".

    For example, given below are the Graham ratings for Suncor Energy Inc (SU), with no adjustments other than those for inflation.

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    Suncor Energy Inc (SU) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 5,974.00%
    Current Assets ÷ [2 x Current Liabilities]: 83.29%
    Net Current Assets ÷ Long Term Debt: 44.53%
    Equity ÷ Debt (for Utilities and Financials): 109.28%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 63.09%
    Graham Number ÷ Previous Close: 118.13%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Most of Buffett's investments are what Graham defined as Special Situations.
    Aug 5, 2015. 07:09 PM | Likes Like |Link to Comment
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