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  • Inside One Of Value Investing's Greatest Minds: Walter Schloss [View article]
    "The Superinvestors of Graham-and-Doddsville" was an article written by Warren Buffett explaining how Benjamin Graham's principles are everlasting, their results irrefutable, and his followers (such as Walter Schloss and Buffett himself) consistently exceptional.

    In the article, Buffett also wrote the following about Schloss:
    "Walter has diversified enormously, owning well over 100 stocks currently. He knows how to identify securities that sell at considerably less than their value to a private owner. And that’s all he does. He doesn’t worry about whether it’s January, he doesn’t worry about whether it’s Monday, he doesn’t worry about whether it’s an election year. He simply says, if a business is worth a dollar and I can buy it for 40 cents, something good may happen to me. And he does it over and over and over again. "

    But please note that Net Current Asset Value (or NCAV) stocks are simply the easiest and most well-known of Benjamin Graham's strategies, and also the source of the general misconception that Graham only recommended cheap stocks. Benjamin Graham actually recommended Index, Defensive and Enterprising stocks before NCAV stocks; and all were allowed higher Quantitative valuations and required greater Qualitative checks.

    Graham also required an NCAV stock to have a positive EPS figure to be eligible for investment. This is a requirement that most NCAV analyses today don't include.

    Benjamin Graham actually emphasized that the secret of sound investment was the "Margin of Safety". Warren Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written" (in its preface, which Buffett wrote).

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by an exact 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 12, 2015. 09:20 AM | Likes Like |Link to Comment
  • Energold Drilling Gives You The Opportunity To Buy $1 For $0.75 [View article]
    Please note that Net Current Asset Value (or NCAV) 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 also required an NCAV stock to have a positive EPS figure to be eligible for investment. This is a requirement that most NCAV analyses today don't include.

    True NCAV stocks would necessarily be selling far below their liquidation value, or Tangible Book Value Per Share (TBVPS).

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by an exact 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 11, 2015. 08:33 AM | 1 Like Like |Link to Comment
  • 3 Stocks Trading At Extreme Discount [View article]
    Benjamin Graham actually emphasized that the secret of sound investment was the "Margin of Safety".

    Warren Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written" (in its preface, which Buffett wrote).

    In The Intelligent Investor, Benjamin Graham recommended various categories of stocks - Defensive, Enterprising and NCAV - and specified precise qualitative and quantitative rules for each category.

    For example, given below are the actual Graham ratings for Valero Energy Corporation (VLO), with no adjustments other than those for inflation.

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

    Valero Energy Corporation - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 27,614.00%
    Current Assets ÷ [2 x Current Liabilities]: 73.45%
    Net Current Assets ÷ Long Term Debt: 98.31%
    Earnings Stability (100% ⇒ 10 Years): 40.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 54.69%
    Graham Number ÷ Previous Close: 107.71%

    Please note that not all stocks failing Graham's rules are necessarily bad investments. Graham's rules are just extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results.

    Even when stocks don't clear them completely, Graham's rules give a clear quantifiable frame of reference for comparison.

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by an exact 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 11, 2015. 08:30 AM | 2 Likes Like |Link to Comment
  • ModernGraham Quarterly Valuation Of Lennar Corporation [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 about this formula and only mentions it briefly to demonstrate why growth-based valuations are unreliable. But due to a printing omission in recent editions of The Intelligent Investor, this formula is sometimes mistakenly used today instead of Graham's actual (and more thorough) methods.

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

    In fact, most of what Graham actually taught has been forgotten today, or is applied inaccurately.

    Another example from the above article is:
    "Adequate Size of Enterprise - market capitalization of at least $2 billion"

    Graham actually recommended "Not less than $100 million of annual sales" for this criterion. Checking for Market Capitalization instead of Sales will - all else being equal - rate overvalued stocks higher than undervalued ones. Other rules mentioned here too - such as dividend record, and PE & PB ratios - are very different from what Graham actually recommended.

    Given below are the actual Graham ratings for Lennar Corporation (LEN), with no adjustments other than those for inflation.

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

    Lennar Corporation - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 1,188.00%
    Current Assets ÷ [2 x Current Liabilities]: 593.92%
    Net Current Assets ÷ Long Term Debt: 149.85%
    Earnings Stability (100% ⇒ 10 Years): 40.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 25.45%
    Graham Number ÷ Previous Close: 64.88%

    Please note that not all stocks failing Graham's rules are necessarily bad investments. Graham's rules are just extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results.

    Even when stocks don't clear them completely, Graham's rules give a clear and quantifiable frame of reference for measuring a stock's margin of safety.

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by a similarly precise 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 6, 2015. 02:56 PM | Likes Like |Link to Comment
  • Do These 3 Graham's Formula Stocks Satisfy Growth And Value? [View article]
    Jae Jun runs a business too and his articles promote his business, pim69.

    The difference is that the Graham formula Jae Jun uses is something Graham warned against multiple times, and such oversimplified analyses are potentially dangerous.

    On the other hand, the methods in Serenity's articles (and screeners) are the ones Graham actually recommended. Serenity's comments also specifically include a full Graham analysis of the stock discussed in the article.

    But these are two different points of view and each individual reader is free to decide what the facts are, and which approach is best.

    More insights on the importance of discussions and dissenting views in comments can be found on Seekingalpha's "User Community Guidelines".

    However, that being said, please do as you see fit.

    Thank you.
    Feb 6, 2015. 08:32 AM | 1 Like Like |Link to Comment
  • 3D Systems: The Baby That Should Not Go Out With The Bath Water [View article]
    Speaking of Benjamin Graham, Graham actually emphasized that the secret of sound investment was the "Margin of Safety".

    Warren Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written" (in its preface, which Buffett wrote himself).

    In The Intelligent Investor, Benjamin Graham recommended various categories of stocks - Defensive, Enterprising and NCAV - and specified precise qualitative and quantitative rules for each category.

    For example, given below are the actual Graham ratings for 3D Systems (DDD), with no adjustments other than those for inflation.

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

    3D Systems - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 102.68%
    Current Assets ÷ [2 x Current Liabilities]: 238.42%
    Net Current Assets ÷ Long Term Debt: 3,652.63%
    Earnings Stability (100% ⇒ 10 Years): 50.00%
    Dividend Record (100% ⇒ 20 Years): 0.00%
    Earnings Growth (100% ⇒ 30% Growth): 619.23%
    Graham Number ÷ Previous Close: 36.54%

    Please note that not all stocks failing Graham's rules are necessarily bad investments. Graham's rules are just extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results.

    Even when stocks don't clear them completely, the rules give a clear and quantifiable frame of reference for measuring a stock's margin of safety.

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by an exact 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 5, 2015. 03:40 PM | Likes Like |Link to Comment
  • Tracking Kahn Brothers Portfolio - Q4 2014 Update [View article]
    Irving Kahn is also Benjamin Graham's second student - the first being Warren Buffett - to name his son after Graham.

    The "original teachings of Benjamin Graham" link in the above article points to Graham's book - The Intelligent Investor.
    Warren Buffett describes this book (in its preface, which he wrote) as "by far the best book about investing ever written".

    In The Intelligent Investor, Benjamin Graham recommended various categories of stocks - Defensive, Enterprising and NCAV - and specified precise qualitative and quantitative rules for each category.

    For example, given below are the actual Graham ratings for Astec Industries (ASTE), with no adjustments other than those for inflation.

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

    Astec Industries - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 186.60%
    Current Assets ÷ [2 x Current Liabilities]: 195.66%
    Net Current Assets ÷ Long Term Debt: 100.00%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 5.00%
    Earnings Growth (100% ⇒ 30% Growth): 96.31%
    Graham Number ÷ Previous Close: 79.38%

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

    Astec Industries - Final Graham Assessment
    Defensive Price (Graham Number): $30.09
    Enterprising Price (Serenity Number): $21.24
    NCAV Price: $15.31
    Qualitative Result: Good / Enterprising
    Intrinsic Value: $21.24
    Previous Close: $37.90
    Quantitative Result: 56.04%

    The prices calculations above are based on Graham's recommended combinations of Assets and Earnings for each category of stock.

    Since this is an Enterprising quality stock, the Intrinsic Value of this stock equals its Enterprising Price.
    Similarly, the Intrinsic Value for a Defensive quality stock equals its Defensive Price (Graham Number), and the Intrinsic Value for an NCAV quality stock equals its NCAV Price.

    Please note that not all stocks failing Graham's rules are necessarily bad investments. Graham's rules are just extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results.

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by an exact 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 4, 2015. 04:28 PM | 1 Like Like |Link to Comment
  • The Magic Of Deep Value Investing [View article]
    Please note that Net Current Asset Value (or NCAV) 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 also required an NCAV stock to have a positive EPS figure to be eligible for investment. This is a requirement that most NCAV analyses today don't include. Serenity's NCAV categorization includes this check.

    True NCAV stocks would necessarily be selling far below their liquidation value, or Tangible Book Value Per Share (TBVPS).

    Graham emphasized that the secret of sound investment was the "Margin of Safety".

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by an exact 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 4, 2015. 04:15 PM | 1 Like Like |Link to Comment
  • Do These 3 Graham's Formula Stocks Satisfy Growth And Value? [View article]
    The formula used in this article is a variation of the following formula mentioned by Benjamin Graham:

    Intrinsic Value = EPS x (8.5 + 2xGrowth)

    Benjamin Graham actually gave several warnings about this formula and only used it briefly to demonstrate why most growth-based valuations are unreliable. But due to a printing omission in recent editions of The Intelligent Investor, this formula is sometimes mistakenly used today instead of Graham's actual (and more thorough) methods.

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

    Benjamin Graham actually recommended various categories of stocks - Defensive, Enterprising and NCAV - and specified precise qualitative and quantitative rules for each category.

    For example, given below are the actual Graham ratings for Stepan Company (NYSE:SCL), with no adjustments other than those for inflation.

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

    Stepan Company - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 376.00%
    Current Assets ÷ [2 x Current Liabilities]: 113.12%
    Net Current Assets ÷ Long Term Debt: 144.39%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 477.42%
    Graham Number ÷ Previous Close: 103.06%

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

    Stepan Company - Final Graham Assessment
    Defensive Price (Graham Number): $42.61
    Enterprising Price: $28.48
    NCAV Price: -$0.28
    Qualitative Result: Excellent / Defensive
    Intrinsic Value: $42.61
    Previous Close: $41.35
    Quantitative Result: 100.00%

    The Intrinsic Value for a Defensive quality stock equals its Defensive Price (Graham Number), the Intrinsic Value for an Enterprising quality stock equals its Enterprising Price, and the Intrinsic Value for an NCAV quality stock equals its NCAV Price. The price calculations above are based on Graham's recommended combinations of Assets and Earnings for each category of stock.

    Graham emphasized that the secret of sound investment was the "Margin of Safety".

    Article 2: http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by a similar exact 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 4, 2015. 02:08 PM | 1 Like Like |Link to Comment
  • 225 Value Stocks Ready For Review [View article]
    The intention of the last comment was to clarify a word, pim69.

    And no, Graham's warnings are not the same thing as a disclaimer.
    This issue is surrounded by misinformation, much of it intentional.

    To understand what Graham really recommended (and warned against), you will have to look up the references yourself.

    Thank you.
    Feb 3, 2015. 05:02 PM | 1 Like Like |Link to Comment
  • Here's Why Wabtec Belongs In Your Portfolio [View article]
    Benjamin Graham actually emphasized that the secret of sound investment was the "Margin of Safety". He recommended various categories of stocks - Defensive, Enterprising and NCAV - and specified precise qualitative and quantitative rules for each category.

    Earnings power was one of the rules included in his investment framework.

    For example, given below are the actual Graham ratings for Wabtec Inc (WAB), with no adjustments other than those for inflation.

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

    Wabtec Inc - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 514.00%
    Current Assets ÷ [2 x Current Liabilities]: 115.03%
    Net Current Assets ÷ Long Term Debt: 167.36%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 95.00%
    Earnings Growth (100% ⇒ 30% Growth): 312.71%
    Graham Number ÷ Previous Close: 36.92%

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

    Wabtec Inc - Final Graham Assessment
    Defensive Price (Graham Number): $31.25
    Enterprising Price (Serenity Number): $12.70
    NCAV Price: $1.00
    Qualitative Result: Good / Enterprising
    Intrinsic Value: $12.70
    Previous Close: $84.65
    Quantitative Result: 15.00%

    Since this is an Enterprising quality stock, the Intrinsic Value of this stock equals its Enterprising Price.
    Similarly, the Intrinsic Value for a Defensive quality stock equals its Defensive Price (Graham Number), and the Intrinsic Value for an NCAV quality stock equals its NCAV Price.

    Please note that not all stocks failing Graham's rules are necessarily bad investments. Graham's rules are just extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results.

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by a similar exact Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 3, 2015. 04:50 PM | 3 Likes Like |Link to Comment
  • ModernGraham Quarterly Valuation Of Fluor Corporation [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 about this formula and only used it to demonstrate why most growth-based valuations are unreliable. But due to a printing omission in recent editions of The Intelligent Investor, this formula is used often today instead of Graham's actual (and more comprehensive) methods.

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

    In fact, most of what Graham actually taught has been forgotten today, or is applied inaccurately.

    Another example from the above article is:
    "Adequate Size of Enterprise - market capitalization of at least $2 billion"

    Graham actually recommended "Not less than $100 million of annual sales" for this criterion. Checking for Market Capitalization instead of Sales will - all else being equal - rate overvalued stocks higher than undervalued ones. Other rules mentioned here too - such as dividend record, and PE & PB ratios - are very different from what Graham actually recommended.

    Given below are the actual Graham ratings for Fluor Corporation (FLR), with no adjustments other than those for inflation.

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

    Fluor Corporation - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 5,470.00%
    Current Assets ÷ [2 x Current Liabilities]: 88.10%
    Net Current Assets ÷ Long Term Debt: 522.86%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 65.00%
    Earnings Growth (100% ⇒ 30% Growth): 197.61%
    Graham Number ÷ Previous Close: 75.25%

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

    Fluor Corporation - Final Graham Assessment
    Defensive Price (Graham Number): $41.83
    Enterprising Price (Serenity Number): $32.76
    NCAV Price: $8.91
    Qualitative Result: Good / Enterprising
    Intrinsic Value: $32.76
    Previous Close: $55.59
    Quantitative Result: 58.93%

    Since this is an Enterprising quality stock, the Intrinsic Value of this stock equals its Enterprising Price.
    Similarly, the Intrinsic Value for a Defensive quality stock equals its Defensive Price (Graham Number), and the Intrinsic Value for an NCAV quality stock equals its NCAV Price.

    Please note that not all stocks failing Graham's rules are necessarily bad investments. Graham's rules are just extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results.

    Article 2: http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by a similar exact Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 3, 2015. 04:45 PM | 1 Like Like |Link to Comment
  • 225 Value Stocks Ready For Review [View article]
    Just to be clear, the word "academic" above is intended to convey "impractical".

    Again, interested readers are encouraged to look up the Graham references cited in the articles and decide on the facts themselves.

    Thank you.
    Feb 3, 2015. 02:40 PM | 1 Like Like |Link to Comment
  • Analysts Continue To Use Wrong Benjamin Graham Formula [View article]
    Just to be clear, the word "academic" above is intended to convey "impractical".

    The repeated assertions and long-winded arguments are distracting (perhaps intentionally) from some very simple facts.

    Again, interested readers are encouraged to look up the cited Graham references and decide on the facts themselves.
    Feb 3, 2015. 02:38 PM | Likes Like |Link to Comment
  • The Clorox Company Dividend Stock Analysis [View article]
    Please note that before being checked against the Graham Number, Benjamin Graham required that a stock first meet six other qualitative criteria.

    For example, given below are all Graham ratings for Clorox Company (CLX).

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

    Clorox Company - Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 1,124.00%
    Current Assets ÷ [2 x Current Liabilities]: 62.61%
    Net Current Assets ÷ Long Term Debt: 13.18%
    Earnings Stability (100% ⇒ 10 Years): 100.00%
    Dividend Record (100% ⇒ 20 Years): 100.00%
    Earnings Growth (100% ⇒ 30% Growth): 96.80%
    Graham Number ÷ Previous Close: 1.75%

    Lastly, not all stocks failing Graham's rules are necessarily bad investments. Graham's rules are just extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results.

    http://seekingalpha.co... shows how one can assess 5000+ NYSE and NASDAQ stocks by a similar exact 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
    Feb 3, 2015. 02:16 PM | Likes Like |Link to Comment
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