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  • Investing For Beginners With Benjamin Graham [View article]
    Definitely not a bad problem to have, Sally G!

    Comparing any overvaluations in your current holdings - against undervaluations in potential new investments - should give a fair idea of how much you stand to gain from potential future appreciation by varying your holdings.

    The effort of rearranging your portfolio is worthwhile only if the potential gain from the change in holdings is significantly more than the tax costs you will incur from the same.

    To repeat the Graham quote from the above discussion on selling:

    "The intelligent investor must carefully evaluate the costs of trading and taxes before attempting to take advantage of any price discrepancy—and should never count on being able to sell for the exact price currently quoted in the market."
    - Things to Consider About Per-Share Earnings, The Intelligent Investor
    Oct 22 09:40 AM | Likes Like |Link to Comment
  • Coach Inc. Is A Great Opportunity For Value Investors [View article]
    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, and things he warned against are often attributed to him instead. Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    For example:
    "Adequate Size of Enterprise - market capitalization of at least $2 billion."

    Graham actually recommended "Not less than $100 million of annual sales" for this criteria ($500 million today if adjusted for inflation). Checking for market capitalization instead will - all other things being equal - rate overvalued stocks higher than undervalued ones.

    Even the other rules mentioned here - such as dividend record, and PE & PB ratios - are all very different from what Graham actually recommended.

    Given below are the actual Graham ratings for Coach Inc (COH).

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

    Coach Inc - Benjamin Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 1,016.00%
    Current Assets ÷ [2 x Current Liabilities]: 143.31%
    Net Current Assets ÷ Long Term Debt: 269,680.00%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 25.00%
    Earnings Growth (100% ⇒ 30% Growth): 253.72%
    Graham Number ÷ Previous Close: 73.14%

    The Final Graham Assessment for Coach Inc is also given below.
    The Quantitative Result (Intrinsic Value ÷ Previous Close) for a stock has to be 100% for true Graham investment.

    Coach Inc - Final Graham Assessment
    Defensive Price (Graham Number): $25.23
    Enterprising Price (Serenity Number): $16.94
    NCAV Price: $3.36
    Qualitative Result: Good / Enterprising
    Intrinsic Value: $16.94
    Previous Close: $34.49
    Quantitative Result: 49.12%

    Graham recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    http://seekingalpha.co... shows how to do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 21 05:50 PM | 1 Like Like |Link to Comment
  • Dow Chemical Company Quarterly Stock Valuation [View article]
    Actually, since this article does not mention the Benjamin Graham formula, it has not been alluded to in Serenity's comment either. But perhaps it should be addressed, since the ModernGraham website lists the formula as one of the evaluation methods it uses.

    Intrinsic Value = EPS x (8.5 + 2xGrowth)

    Benjamin Graham gave the following warnings with this formula:
    1. "Warning: This material is supplied for illustrative purposes only".
    2. "Let the reader not be misled into thinking that such projections have any high degree of reliability".
    3. "Note that we do not suggest that this formula gives the “true value” of a growth stock".

    Graham only mentions this formula to demonstrate why such oversimplified growth estimates are unreliable. This formula is popular only due to a printing omission in recent editions of The Intelligent Investor.

    http://seekingalpha.co... discusses the issue in detail.

    On the other hand, Graham distinctly recommended the methods in the unmistakably named "Stock Selection" chapters. The article mentioned in the previous comment is about those methods.
    Oct 21 05:40 PM | Likes Like |Link to Comment
  • Nvidia Quarterly Stock Valuation [View article]
    Actually, since this article does not mention the Benjamin Graham formula, it has not been alluded to in Serenity's previous comment either. But perhaps it should be addressed, since the ModernGraham website lists the formula as one of the evaluation methods it uses.

    Intrinsic Value = EPS x (8.5 + 2xGrowth)

    Benjamin Graham gave the following warnings with this formula:
    1. "Warning: This material is supplied for illustrative purposes only".
    2. "Let the reader not be misled into thinking that such projections have any high degree of reliability".
    3. "Note that we do not suggest that this formula gives the “true value” of a growth stock".

    Graham only mentions this formula to demonstrate why such oversimplified growth estimates are unreliable. This formula is popular only due to a printing omission in recent editions of The Intelligent Investor.

    http://seekingalpha.co... discusses the issue in detail.

    On the other hand, Graham distinctly recommended the methods in the unmistakably named "Stock Selection" chapters. The article mentioned in the previous comment is about those methods.
    Oct 21 05:35 PM | Likes Like |Link to Comment
  • Ford From Warren Buffett Approach [View article]
    There are multiple issues here, some of which have been mentioned by other readers in the comments above.

    1. Net Current Assets is actually calculated as:
    Net Current Assets = Current Assets - Current Liabilities.

    2. Graham does mention Net Current Assets, but only as one of the qualitative checks for Defensive stocks; not as a quantitative price calculation.

    3. For Net Current Asset Value (NCAV) stocks, Graham did recommend a quantitative price calculation which is actually calculated as:
    NCAV = Current Assets - Total Liabilities (Per Share).

    4. The simplistic NCAV stocks (or Net-Net stocks as they are often referred to) are only the most well-known of Graham's strategies, and the source of the general misconception that Graham recommended cheap stocks.

    Graham actually recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    For example, given below are the actual Graham ratings for The Ford Motor Company (F).

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

    Ford Motor Company - Benjamin Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 29,384.00%
    Current Assets ÷ [2 x Current Liabilities]: 102.23%
    Net Current Assets ÷ Long Term Debt: 101.06%
    Earnings Stability (100% ⇒ 10 Years): 50.00%
    Dividend Record (100% ⇒ 20 Years): 10.00%
    Earnings Growth (100% ⇒ 30% Growth): 208.27%
    Graham Number ÷ Previous Close: 141.88%

    The Final Graham Assessment for The Ford Motor Company is also given below.
    The Quantitative Result (Intrinsic Value ÷ Previous Close) for a stock has to be 100% for true Graham investment.

    Ford Motor Company - Final Graham Assessment
    Defensive Price (Graham Number): $20.10
    Enterprising Price (Serenity Number): $11.31
    NCAV Price: $-6.04
    Qualitative Result: Good / Enterprising
    Intrinsic Value: $11.31
    Previous Close: $14.17
    Quantitative Result: 79.82%

    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, and things he warned against are often attributed to him instead. Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    http://seekingalpha.co... explains how one can do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 21 05:08 PM | 2 Likes Like |Link to Comment
  • Nvidia Quarterly Stock Valuation [View article]
    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, and things he warned against are often attributed to him instead. Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    For example:
    "Adequate Size of Enterprise - market capitalization of at least $2 billion."

    Graham actually recommended "Not less than $100 million of annual sales" for this criteria ($500 million today if adjusted for inflation). Checking for market capitalization instead will - all other things being equal - rate overvalued stocks higher than undervalued ones.

    Even the other rules mentioned here - such as dividend record, and PE & PB ratios - are all very different from what Graham actually recommended.

    Given below are the actual Graham ratings for Nvidia Corp (NVDA).

    Defensive Graham investment requires all ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

    Nvidia Corp - Benjamin Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 826.00%
    Current Assets ÷ [2 x Current Liabilities]: 297.45%
    Net Current Assets ÷ Long Term Debt: 344.97%
    Earnings Stability (100% ⇒ 10 Years): 40.00%
    Dividend Record (100% ⇒ 20 Years): 10.00%
    Earnings Growth (100% ⇒ 30% Growth): 137.04%
    Graham Number ÷ Previous Close: 69.87%

    Graham recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    http://seekingalpha.co... explains how one can do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 21 04:51 PM | Likes Like |Link to Comment
  • Dow Chemical Company Quarterly Stock Valuation [View article]
    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, and things he warned against are often attributed to him instead. Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    For example:
    "Adequate Size of Enterprise - market capitalization of at least $2 billion."

    Graham actually recommended "Not less than $100 million of annual sales" for this criteria ($500 million today if adjusted for inflation). Checking for market capitalization instead will - all other things being equal - rate overvalued stocks higher than undervalued ones.

    Even the other rules mentioned here - such as dividend record, and PE & PB ratios - are all very different from what Graham actually recommended.

    Given below are the actual Graham ratings for The Dow Chemical Company (DOW).

    Defensive Graham investment requires all ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

    Dow Chemical Company - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 11,416.00%
    Current Assets ÷ [2 x Current Liabilities]: 104.32%
    Net Current Assets ÷ Long Term Debt: 77.32%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 45.72%
    Graham Number ÷ Previous Close: 66.96%

    Graham recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    http://seekingalpha.co... explains how one can do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 21 04:47 PM | Likes Like |Link to Comment
  • United Technologies Corp. Has A Strong Balance Sheet And Excellent Free Cash Flow [View article]
    Before being checked against the Graham Number, Benjamin Graham required that a stock first meet six other qualitative criteria.

    For example, given below are the actual Graham ratings for United Technologies Corporation (UTX).

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

    United Technologies Corporation - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 12,526.00%
    Current Assets ÷ [2 x Current Liabilities]: 64.57%
    Net Current Assets ÷ Long Term Debt: 33.65%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 136.38%
    Graham Number ÷ Previous Close: 66.10%

    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, and things he warned against are often attributed to him instead. Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    Graham recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    http://seekingalpha.co... shows how one can do an exact 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no alterations other than adjustments for inflation.
    Oct 21 09:29 AM | Likes Like |Link to Comment
  • Graham Value Stock Portfolio October Update [View article]
    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    Benjamin Graham recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    For example, given below are the actual Graham ratings for Universal Forest Products Inc (UFPI).

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - CA/2CL : 75%, NCA/LTD : 90%, EPS Stability: 50%, Div Record: 5% and GN/PC: 137%.

    Universal Forest Products Inc - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 494.00%
    Current Assets ÷ [2 x Current Liabilities]: 178.43%
    Net Current Assets ÷ Long Term Debt: 421.84%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 29.22%
    Graham Number ÷ Previous Close: 64.25%

    The Final Graham Assessment for Universal Forest Products Inc is also given below.
    The Quantitative Result (Intrinsic Value ÷ Previous Close) for a stock has to be 100% for true Graham investment.

    Universal Forest Products Inc - Final Graham Assessment
    Defensive Price (Graham Number): $30.01
    Enterprising Price (Serenity Number): $25.50
    NCAV Price: $11.03
    Qualitative Result: Good / Enterprising
    Intrinsic Value: $25.50
    Previous Close: $46.71
    Quantitative Result: 54.59%

    http://seekingalpha.co... explains how one can do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 19 04:52 PM | Likes Like |Link to Comment
  • The Financialization Of Value Investing [View article]
    Interesting article, but a little more information can probably put the facts in better context.

    Graham says in his 1976 interview - "An hour with Ben Graham" - that:
    "We could have built up an enormous business had we wanted to, but we limited ourselves to a maximum of $15 million of capital-only a drop in the bucket these days. The question of whether we could earn the maximum percentage per year was what interested us. It was not the question of total sums, but annual rates of return that we were able to accomplish."

    Warren Buffett himself explains - in the freely available "Legacy of Benjamin Graham" video - how Graham was completely focussed on refining methods that ordinary investors could apply to achieve results similar to his own (Grahams's).

    Graham was interested in more than just money.
    Developing an investment framework that would stand the test of time for generations of investors, that's immortality.

    From the Preface to the Fourth Edition of The Intelligent Investor, by Warren Buffett:
    "In an area where much looks foolish within weeks or months after publication, Ben’s principles have remained sound—their value often enhanced and better understood in the wake of financial storms that demolished flimsier intellectual structures."

    Buffett also once wrote a lengthy article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    http://seekingalpha.co... shows how to do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 19 04:43 PM | Likes Like |Link to Comment
  • 5 More Undervalued Companies For The Defensive Investor To Research [View article]
    Intrinsic Value = EPS x (8.5 + 2xGrowth)

    Benjamin Graham gave the following warnings with this formula:
    1. "Warning: This material is supplied for illustrative purposes only".
    2. "Let the reader not be misled into thinking that such projections have any high degree of reliability".
    3. "Note that we do not suggest that this formula gives the “true value” of a growth stock".

    Graham only mentions this formula to demonstrate why such oversimplified growth estimates are unreliable. This formula is popular only due to a printing omission in recent editions of The Intelligent Investor.

    Article 1: http://seekingalpha.co... discusses the issue in detail.

    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, and things he warned against are often attributed to him instead. The above formula is just one example.

    Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    For example:
    "Adequate Size of Enterprise - market capitalization of at least $2 billion."

    Graham actually recommended "Not less than $100 million of annual sales" for this criteria. Checking for market capitalization instead will - all other things being equal - rate overvalued stocks higher than undervalued ones.

    Even the other rules mentioned here - such as dividend record, and PE & PB ratios - are all very different from what Graham actually recommended.

    Given below are the actual Graham ratings for Coach Inc (COH).

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - CA/2CL : 75%, NCA/LTD : 90%, EPS Stability: 50%, Div Record: 5% and GN/PC: 137%.

    Coach Inc - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 1,016.00%
    Current Assets ÷ [2 x Current Liabilities]: 143.31%
    Net Current Assets ÷ Long Term Debt: 269,680.00%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 25.00%
    Earnings Growth (100% ⇒ 30% Growth): 253.72%
    Graham Number ÷ Previous Close: 73.14%

    The Final Graham Assessment for Coach Inc is also given below.
    The Quantitative Result (Intrinsic Value ÷ Previous Close) for a stock has to be 100% for true Graham investment.

    Coach Inc - Final Graham Assessment
    Defensive Price (Graham Number): $25.23
    Enterprising Price (Serenity Number): $16.94
    NCAV Price: $3.36
    Qualitative Result: Good / Enterprising
    Intrinsic Value: $16.94
    Previous Close: $34.49
    Quantitative Result: 49.12%

    Graham recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    Article 2: http://seekingalpha.co... shows how to do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 19 04:13 PM | 1 Like Like |Link to Comment
  • Strategic Dividend Reinvestor ETN Packs A Dividend Wallop - With A Twist [View article]
    Nice article!
    Very informative.

    There's a small typo though:
    "An ETF is, instead, a contractual debt arrangement"

    That should probably be "An ETN is"
    Just in case you want to have it corrected, but it's quite inconsequential.

    But please note that Graham's methods of stock selection are still extremely relevant and applicable even today.

    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, and things he warned against are often attributed to him instead.

    Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    Graham recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    http://seekingalpha.co... shows how to do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 18 09:57 AM | Likes Like |Link to Comment
  • 5 More Undervalued Companies For The Enterprising Investor Near 52-Week Lows [View article]
    Dear Readers,

    Benjamin Graham gave the following warnings with this formula:
    1. "Warning: This material is supplied for illustrative purposes only".
    2. "Let the reader not be misled into thinking that such projections have any high degree of reliability".
    3. "Note that we do not suggest that this formula gives the “true value” of a growth stock".

    On the other hand, he distinctly recommends the methods in the unmistakably named "Stock Selection" chapters.

    The two articles mentioned in the earlier comment have references, page numbers and scans of the relevant pages.

    Thank you!
    Oct 17 01:23 PM | Likes Like |Link to Comment
  • 5 More Undervalued Companies For The Enterprising Investor Near 52-Week Lows [View article]
    Intrinsic Value = EPS x (8.5 + 2xGrowth)

    Benjamin Graham actually gave several warnings about this formula and only used it to show why such oversimplified growth estimates are unreliable. This formula is popular only due to a printing omission in recent editions of The Intelligent Investor.

    Article 1: http://seekingalpha.co... discusses the issue in detail.

    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, and things he warned against are often attributed to him instead.
    The above formula is just one example.

    Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    For example:
    "Adequate Size of Enterprise - market capitalization of at least $2 billion."

    Graham actually recommended "Not less than $100 million of annual sales" for ensuring adequate size of a company for Defensive investment. Checking for market capitalization instead of sales will - all other things being equal - rate overvalued stocks better than undervalued ones.

    Even the other rules mentioned here - such as dividend requirements, and PE & PB ratios - are all very different from what Graham actually recommended.

    For example, given below are the actual Graham ratings for Ford Motor Company (F).

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - CA/2CL : 75%, NCA/LTD : 90%, EPS Stability: 50%, Div Record: 5% and GN/PC: 137%.

    Ford Motor Company - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 652.00%
    Current Assets ÷ [2 x Current Liabilities]: 150.39%
    Net Current Assets ÷ Long Term Debt: 199.64%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 0.00%
    Earnings Growth (100% ⇒ 30% Growth): 378.09%
    Graham Number ÷ Previous Close: 50.08%

    The Final Graham Assessment for Ford Motor Company is also given below.
    The Quantitative Result (Graham Price ÷ Previous Close) for a stock has to be 100% for true Graham investment.

    Ford Motor Company - Final Graham Assessment
    Defensive Price (Graham Number): $48.92
    Enterprising Price (Serenity Number): $32.87
    NCAV Price: $5.81
    Qualitative Result: Bargain / NCAV
    Graham Price: $5.81
    Previous Close: $97.68
    Quantitative Result: 5.95%

    Graham recommended various categories of stocks - Index, Defensive, Enterprising and NCAV. He emphasized that the secret of sound investment was the "Margin of Safety", and specified precise qualitative and quantitative rules for each category.

    He also spent nearly 50 years developing and backtesting the 17 rules in his investment framework; a framework that has been repeatedly endorsed by some of the world's most successful investors.

    Article 2: http://seekingalpha.co... shows how to do a true 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no modifications other than adjustments for inflation.
    Oct 17 08:30 AM | Likes Like |Link to Comment
  • Verizon Communications Inc. Is Focused On Generating Cash And Lowering Debt [View article]
    Before being checked against the Graham Number, Benjamin Graham required that a stock first meet six other qualitative criteria.

    For example, given below are the actual Graham ratings for Verizon Communications (VZ).

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - CA/2CL : 75%, NCA/LTD : 90%, EPS Stability: 50%, Div Record: 5% and GN/PC: 137%.

    Verizon Communications - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 24,110.00%
    Current Assets ÷ [2 x Current Liabilities]: 131.23%
    Net Current Assets ÷ Long Term Debt: 49.01%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 60.93%
    Graham Number ÷ Previous Close: 5.95%

    Warren Buffett once wrote an article explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his students consistently exceptional. It's called "The Superinvestors of Graham-and-Doddsville".

    But most of what Graham actually taught has been forgotten today, or is applied wrongly.
    The Graham Number is just one example.

    Even when Graham's recommended methods are used, they are heavily modified - often beyond recognition - to clear the stocks, rather than having stocks clear them.

    http://seekingalpha.co... shows how to do an exact 17-point Benjamin Graham assessment for 5000+ NYSE and NASDAQ stocks; with no alterations other than adjustments for inflation.
    Oct 16 11:23 AM | Likes Like |Link to Comment
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