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  • 5 Undervalued Companies For The Enterprising Investor Near 52-Week Lows [View article]
    Intrinsic Value = Earnings x (8.5 + 2 x growth)

    If these valuations are based on the above formula as the ModernGraham website says, Graham actually warned against this formula and only used it to show why such oversimplified growth formulas 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.

    Benjamin Graham actually recommended three different categories of stocks - Defensive, Enterprising and NCAV - with 17 different qualitative and quantitative criteria for finding them.

    For example, given below are the actual Graham ratings for TJX Companies Inc (NYSE:TJX).

    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/Price: 137%.

    TJX Companies Inc - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 5,484.00%
    Current Assets ÷ [2 x Current Liabilities]: 86.25%
    Net Current Assets ÷ Long Term Debt: 200.14%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 85.00%
    Earnings Growth (100% ⇒ 30% Growth): 266.67%
    Graham Number ÷ Current Price: 36.08%

    The Final Graham Assessment for TJX Companies Inc is also given below.
    The Quantitative Result for a stock has to be 100% for true Graham investment (Quantitative Result = Graham Price ÷ Previous Close).

    TJX Companies Inc - Final Graham Assessment
    Defensive Price (Graham Number): $19.24
    Enterprising Price (Serenity Number): $14.05
    NCAV Price: $0.14
    Qualitative Result: Good / Enterprising
    Graham Price: $14.05
    Previous Close: $53.34
    Quantitative Result: 26.34%

    Article 2: http://seekingalpha.co... discusses Graham's actual 17 stock selection criteria and shows how to apply them to 5000 NYSE & NASDAQ stocks today, with adjustments for inflation.
    Aug 14 08:30 AM | Likes Like |Link to Comment
  • Ben Graham's Formula For Value Investing: A Conservative Revision For Estimating Intrinsic Value [View article]
    Hello Adam,

    Thank you for explaining and nice effort! But casual readers sometimes end up using this completely unreliable formula that Graham warned against, instead of the slightly more difficult methods that he actually recommended.

    So it would be good for readers to have the above articles as a reference, to know what Graham actually did and did not recommend.

    Best wishes.
    Aug 12 01:47 PM | Likes Like |Link to Comment
  • Ben Graham's Formula For Value Investing: A Conservative Revision For Estimating Intrinsic Value [View article]
    Intrinsic Value = Earnings x (8.5 + 2 x growth)

    Benjamin Graham actually warned against this formula and only used it to show why such oversimplified growth formulas 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.

    Graham actually recommended three different categories of stocks - Defensive, Enterprising and NCAV - with 17 different qualitative and quantitative criteria for finding them.

    For example, given below are the actual Graham ratings for Suncor Energy Inc (NYSE:SU).

    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/Price: 137%.

    Suncor Energy Inc - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 8,060.00%
    Current Assets ÷ [2 x Current Liabilities]: 69.27%
    Net Current Assets ÷ Long Term Debt: 40.07%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 85.45%
    Graham Number ÷ Current Price: 100.00%

    Article 2: http://seekingalpha.co... discusses Graham's actual 17 stock selection criteria and shows how to apply them to 5000 NYSE & NASDAQ stocks today.
    Aug 12 09:45 AM | Likes Like |Link to Comment
  • 5 Undervalued Companies For Enterprising Investors With High Dividend Yields [View article]
    "To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework. This book precisely and clearly prescribes the proper framework. You must supply the emotional discipline."
    From the Preface to the Fourth Edition of The Intelligent Investor
    By Warren E. Buffett

    "there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run. Our view is different. The rate of return sought should be dependent, rather, on the amount of intelligent effort the investor is willing and able to bring to bear on his task"
    - Benjamin Graham, The Intelligent Investor

    Investing successfully doesn't require a genius level IQ, Hardog.
    But it does require a little effort, which will prove more than worthwhile.
    Aug 11 02:38 AM | Likes Like |Link to Comment
  • Ben Graham's Explanation For The Dividend Champions' Premium Valuation [View article]
    Good article! But as some of the other readers pointed out, Benjamin Graham also specified requirements for Earnings growth and gave Margin of Safety calculations for the multiples an investor should stay within.

    In all, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - with 17 different qualitative and quantitative criteria for finding them.

    For example, given below are the actual Graham ratings for Hershey and Sherwin-Williams.

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

    The Hershey Company (NYSE:HSY) - Defensive Graham Ratings
    Sales | Size: 1,430.00%
    Current Assets ÷ Current Liabilities: 88.33%
    Current Assets ÷ Long Term Debt: 60.12%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 111.05%
    Graham Number ÷ Current Price: 19.44%

    The Sherwin-Williams Company (NYSE:SHW) - Defensive Graham Ratings
    Sales | Size: 2,038.00%
    Current Assets ÷ Current Liabilities: 62.46%
    Current Assets ÷ Long Term Debt: 56.14%
    Earnings Stability: 100.00%
    Dividend Record: 100.00%
    Earnings Growth: 133.04%
    Graham Number ÷ Current Price: 10.46%

    http://seekingalpha.co... discusses Graham's actual 17 stock selection criteria and shows how to apply them to 5000 NYSE & NASDAQ stocks today.
    Aug 9 10:34 PM | 3 Likes Like |Link to Comment
  • 5 Undervalued Stocks According To The Graham Formula [View article]
    Intrinsic Value = Earnings x (8.5 + 2 x growth)

    If these valuations are based on the above formula as the article says, Graham actually warned against this formula and only used it to show why such oversimplified growth formulas 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.

    Benjamin Graham actually recommended three different categories of stocks - Defensive, Enterprising and NCAV - with 17 different qualitative and quantitative criteria for finding them.

    For example, given below are the actual Graham ratings for Apollo Education Group Inc (NASDAQ:APOL)

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

    Apollo Education Group Inc - Defensive Graham Ratings
    Sales | Size: 736.00%
    Current Assets ÷ Current Liabilities: 68.45%
    Current Assets ÷ Long Term Debt: 905.31%
    Earnings Stability: 100.00%
    Dividend Record: 0.00%
    Earnings Growth: 98.11%
    Graham Number ÷ Current Price: 65.66%

    The Final Graham Assessment for Apollo Education Group Inc is also given below.
    The Quantitative Result for a stock has to be 100% for true Graham investment (Quantitative Result = Graham Price ÷ Previous Close).

    Apollo Education Group Inc - Final Graham Assessment
    Defensive Price (Graham Number): $18.19
    Enterprising Price (Serenity Number): $13.28
    NCAV Price: $2.38
    Qualitative Result: OK / NCAV
    Graham Price: $2.38
    Previous Close: $27.70
    Quantitative Result: 8.59%

    Article 2: http://seekingalpha.co... discusses Graham's actual 17 stock selection criteria and shows how to apply them to 5000 NYSE & NASDAQ stocks today.
    Aug 6 07:02 AM | Likes Like |Link to Comment
  • 5 Undervalued Companies For Enterprising Investors With High Dividend Yields [View article]
    Intrinsic Value = Earnings x (8.5 + 2 x growth)

    If these valuations are based on the above formula as the ModernGraham website says, Graham actually warned against this formula and only used it to show why such oversimplified growth formulas 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.

    Benjamin Graham actually recommended three different categories of stocks - Defensive, Enterprising and NCAV - with 17 different qualitative and quantitative criteria for finding them.

    For example, given below are the actual Graham ratings for KLA-Tencor Corp (NASDAQ:KLAC)

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

    KLA-Tencor Corp - Defensive Graham Ratings
    Sales | Size: 568.00%
    Current Assets / Current Liabilities: 252.55%
    Current Assets / Long Term Debt: 466.95%
    Earnings Stability: 40.00%
    Dividend Record: 45.00%
    Earnings Growth: 170.82%
    Graham Number / Current Price: 53.62%

    The Final Graham Assessment for KLA-Tencor Corp is also given below.
    The Quantitative Result for a stock has to be 100% for true Graham investment (Quantitative Result = Graham Price ÷ Previous Close).

    KLA-Tencor Corp - Final Graham Assessment
    Defensive Price (Graham Number): $38.55
    Enterprising Price (Serenity Number): $28.15
    NCAV Price: $15.39
    Qualitative Result: OK / NCAV
    Graham Price: $15.39
    Previous Close: $71.89
    Quantitative Result: 21.41%

    Article 2: http://seekingalpha.co... discusses Graham's actual 17 stock selection criteria and shows how to apply them to 5000 NYSE & NASDAQ stocks today, with adjustments for inflation.
    Jul 31 07:52 AM | 2 Likes Like |Link to Comment
  • 10 Stocks Meeting Benjamin Graham's NCAV Criteria In May [View article]
    It's still too early to tell, Gabriele Giordano.

    Stocks meeting Graham's criteria are inherently unpopular. The market can sometimes take as long as 3-5 years to recognize their true worth.

    But over sustained periods of time, Graham's investment strategies tend to consistently outperform all others.
    Jul 28 04:19 PM | Likes Like |Link to Comment
  • This 'Black Sheep' Company Has Raised Its Dividend 42 Years In A Row [View article]
    Benjamin Graham was Warren Buffett's professor and mentor at Columbia Business School. Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written".

    Interestingly, of the 5000 NYSE and NASDAQ stocks analyzed automatically every day on Serenity, Universal Corporation (NYSE:UVV) is the only one that clears every single one the Defensive criteria - Graham's toughest criteria - completely.

    Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - with 17 different qualitative and quantitative criteria for finding them.

    http://seekingalpha.co... discusses all of Graham's 17 stock selection criteria, and shows how to apply them to 5000 NYSE & NASDAQ stocks today.
    Jul 27 03:45 PM | Likes Like |Link to Comment
  • Universal Corp Going Ex-Dividend This Week [View article]
    Benjamin Graham was Warren Buffett's professor and mentor at Columbia Business School. Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written".

    Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - with 17 different qualitative and quantitative criteria for finding them.

    And interestingly, of the 5000 NYSE and NASDAQ stocks analyzed automatically everyday on Serenity, Universal Corporation (NYSE:UVV) is the only one that clears every single one the Defensive criteria - Graham's toughest criteria - completely.

    http://seekingalpha.co... discusses all of Graham's 17 stock selection criteria, and shows how to apply them to 5000 NYSE & NASDAQ stocks today.
    Jul 27 03:44 PM | Likes Like |Link to Comment
  • Analysts Continue To Use Wrong Benjamin Graham Formula [View article]
    Also Jae Jun,

    Even though it's mentioned on your profile, it should perhaps be noted here for the benefit of casual readers that you run "Old School Value"; a valuation tool that uses this formula to analyze stocks.
    Jul 27 07:58 AM | Likes Like |Link to Comment
  • 5 Undervalued Companies For The Defensive Investor With High Dividend Yields [View article]
    > I believe he was using it to demonstrate that
    > predicting future growth is a fools game.

    Absolutely, frrizzo380.
    Jul 27 07:49 AM | Likes Like |Link to Comment
  • 5 Undervalued Companies For The Defensive Investor With High Dividend Yields [View article]
    Dear Readers,

    The two articles linked to in the previous comment include all required references and scans.
    Please go through them and decide for yourself what Graham actually taught, and what he warned against.

    Thank you.
    Jul 26 10:23 AM | 1 Like Like |Link to Comment
  • 5 Undervalued Companies For The Defensive Investor With High Dividend Yields [View article]
    Intrinsic Value = Earnings x (8.5 + 2 x growth)

    If the valuation is based on the above formula as the ModernGraham website says, Graham actually warned against this formula and only used it to show why such oversimplified growth formulas are unreliable.
    This formula is popular only due to a printing omission in later editions of The Intelligent Investor. http://seekingalpha.co... discusses the issue in detail.

    Benjamin Graham actually recommended three different categories of stocks - Defensive, Enterprising and NCAV - with 17 different qualitative and quantitative criteria for finding them.

    For example, given below are the actual Graham ratings for Intel Corp (NASDAQ:INTC)

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

    Intel Corp - Defensive Graham Ratings
    Sales | Size: 10,542.00%
    Current Assets / Current Liabilities: 118.23%
    Current Assets / Long Term Debt: 140.65%
    Earnings Stability: 100.00%
    Dividend Record: 95.00%
    Earnings Growth: 148.45%
    Graham Number / Current Price: 55.47%

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

    Intel Corp - Final Graham Assessment
    Defensive Price (Graham Number): $19.00
    Enterprising Price (Serenity Number): $13.88
    NCAV Price: -$0.41
    Qualitative Result: Good / Enterprising
    Graham Price: $13.88
    Previous Close: $34.25
    Quantitative Result: 40.53%

    http://seekingalpha.co... discusses Graham's actual 17 stock selection criteria and shows how to apply them to 5000 NYSE & NASDAQ stocks today, with no changes other than adjustments for inflation.
    Jul 26 08:24 AM | 1 Like Like |Link to Comment
  • What Single Page Of An Investment Book Should You Read? [View article]
    While Security Analysis is undoubtedly a great book, Graham's later and more distilled publication - The Intelligent Investor - might have been a better recommendation.

    In the preface to The Intelligent Investor, Warren Buffett writes:

    "I read the first edition of this book early in 1950, when I was nineteen. I thought then that it was by far the best book about investing ever written. I still think it is."

    and a little later, Buffett specifically mentions:

    "If you follow the behavioral and business principles that Graham advocates—and if you pay special attention to the invaluable advice in Chapters 8 and 20—you will not get a poor result from your investments. (That represents more of an accomplishment than you might think.)"

    Graham himself writes in the said chapter (Chapter 20: "Margin of Safety" as the Central Concept of Investment) that:

    "In the old legend the wise men finally boiled down the history of mortal affairs into the single phrase, “This too will pass.” Confronted with a like challenge to distill the secret of sound investment into three words, we venture the motto - Margin of Safety."

    So if one were to recommend a single page from a single book, the first page of Chapter 20 of The Intelligent Investor might perhaps have been a better choice.
    The page contains counsel specifically recommended by both Buffett and Graham.

    Also, the third type of Stock recommended by Graham in The Intelligent Investor is the Net Current Asset Value stock or NCAV stock (the first two types being Defensive and Enterprising stocks).

    http://seekingalpha.co... discusses how to buy and sell all three types of Graham stocks today, from 5000 NYSE & NASDAQ stocks.
    Jul 24 07:43 PM | Likes Like |Link to Comment
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