5 Defensive Benjamin Graham-Type Dividend Stocks [View article]
Benjamin Graham recommended 3 different grades of stocks for investment, and 16 criteria for finding them.
With respect to Graham's defensive grade criteria:
Freeport McMoRan Copper & Gold fails the earnings stability and dividend record criteria. Chevron Corp fails the liabilities criteria. Guess Inc fails the earnings stability and earnings growth criteria. Occidental Petroleum fails the liabilities and debt criteria.
(These stocks do not meet Graham's Enterprising or NCAV grade criteria either)
For a comprehensive Benjamin Graham investment approach, see "How To Build A Complete Benjamin Graham Portfolio": http://seekingalpha.co...
Why Benjamin Graham Investors Can Ignore What 'Research' Says [View article]
Benjamin Graham actually taught that the returns an investor could expect were not proportional to the risk he was willing to assume, but rather, to the effort he was willing to put into his investments.
Quoted from "General Portfolio Policy: The Defensive Investor" of The Intelligent Investor:
"It has been an old and sound principle that those who cannot afford to take risks should be content with a relatively low return on their invested funds. From this 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. The minimum return goes to our passive investor, who wants both safety and freedom from concern. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligence and skill."
And from Warren Buffett's Preface to The Intelligent Investor:
"Whether you achieve outstanding results will depend on the effort and intellect you apply to your investments, as well as on the amplitudes of stock-market folly that prevail during your investing career"
This Benjamin Graham Rule Encourages More Disciplined Investing [View article]
From Chapter 14 of The Intelligent Investor - Stock Selection for the Defensive Investor: "6. Current price should not be more than 15 times average earnings."
From Chapter 15 of The Intelligent Investor - Stock Selection for the Enterprising Investor: "issues selling at P/E multipliers under 10"
Would Benjamin Graham Like HollyFrontier? [View article]
HollyFrontier Corp (HFC) has been paying uninterrupted dividends for dividends for the last 20 years (from 1994 to 2013).
Serenity's automated screeners also currently list Weis Markets Inc (WMK) and Helmerich & Payne Inc (HP) as stocks that clear all the above Defensive criteria specified by Graham.
6 S&P 500 Dividend Stocks Undervalued By Free Cash Flow And The Graham Number [View article]
To be checked against the Graham Number, Benjamin Graham required that a stock first have uninterrupted earnings for the previous 10 years, uninterrupted dividends for the previous 20 years, and meet 4 other Defensive criteria.
Aflac Inc fails the criteria for liabilities and debt. Humana Inc fails the criteria for liabilities and dividends. L-3 Communications Holdings Inc fails the criteria for liabilities, debt and dividends. Northrop Grumman Corp fails the criteria for liabilities and debt. Principal Financial Group Inc fails all the criteria other than Sales and Earnings stability. Torchmark Corp fails the criteria for liabilities and debt.
10 Stocks Meeting Benjamin Graham's Defensive Criteria In 2013 [View article]
Hello tyouth,
Serenity excludes Goodwill and Intangibles while calculating Book value and for INTC, that comes to $7.13. Hence the lower Graham Number: GN = sqrt(22.5 x 2.13 EPS x 7.13 BVPS) = $18.49
Book value, also known as Net Tangible Assets, is the theoretical liquidation value of a share and is not traditionally supposed to include Goodwill and Intangibles.
But in practice, this is not always followed. So Serenity does not use reported Book Values.
This Benjamin Graham Rule Encourages More Disciplined Investing [View article]
Hi,
Could you please give the source for this rule?
In the Intelligent Investor, Graham recommends 3 different grades of stocks for investment, and 16 different criteria for finding them; including different PE criteria for different grades.
Given below is the link to detailed article on seekingalpha
10 Non Financial Stocks Trading Below Their Graham Number [View article]
Serenity's Graham Number screener lists nearly a 1000 NYSE and NASDAQ stocks selling under their Graham Number. Link: http://bit.ly/RryASs
But to use the Graham Number, a stock must first have uninterrupted earnings for the last 10 years, uninterrupted dividends for the last 20 years, and meet 4 other Defensive criteria.
Cliffs Natural Resources Inc fails all Defensive criteria other than Sales and Earnings growth. Xerox Corp fails the liabilities, debt and dividend criteria. Hess Corp fails the liabilities, debt and earnings stability. And so on...
Serenity gives a detailed Defensive breakup, as well as a complete Graham analysis, for all 4000 NYSE and NASDAQ stocks.
How To Build A Complete Benjamin Graham Portfolio [View article]
Hello Amerlafrance,
The lists/tables shown here are screenshots. To click on a link, you need to go to the actual screener on Serenity. Link: http://bit.ly/QYCMaj
INTC has a very low P/E to compensate for the high P/B. So its Graham Number, which is a combination of EPS and Book value, is more than its current price. The Graham Number in this case is eligible for consideration since INTC meets all the other Defensive Criteria.
A Complete Benjamin Graham Analysis For LinkedIn [View article]
There is a popular joke that goes:
A businessman interviewing job applications for the position of manager asked each applicant only one question, "What is two plus two?" The first interviewee was a journalist. His answer was, "Twenty-two". The second was a social worker. She said, "I don't know the answer but I'm very glad that we had the opportunity to discuss it." The third applicant was an engineer. He pulled out a slide rule and came up with an answer "somewhere between 3.999 and 4.001." Next came an attorney. He stated that "in the case of Jenkins vs. the Department of the Treasury, two plus two was proven to be four." Finally, the businessman interviewed an accountant. The accountant went over to the door, closed it and said in a low voice, "How much do you want it to be?"
The point being, The Market Flash, is that there is a reason GAAP exists. If one were to do accounting according to one's own rules, almost any number can be shown for any metric. The only constraint would be how much sounds believable.
"It is important as a savvy investor to ensure that the information you are using for comparison follows the GAAP rules and is not the (often more publicized) non-GAAP earnings number."
Ben Graham's Stock Valuing Formula: It Really Works [View article]
In his book, Graham uses this formula to replicate other forecasting methods, while retrospectively showing how stocks never behave according to any such forecasts. In fact, he gives multiple warnings to never use any such formula.
So if it's working for you, that's actually surprising.
5 Defensive Benjamin Graham-Type Dividend Stocks [View article]
With respect to Graham's defensive grade criteria:
Freeport McMoRan Copper & Gold fails the earnings stability and dividend record criteria.
Chevron Corp fails the liabilities criteria.
Guess Inc fails the earnings stability and earnings growth criteria.
Occidental Petroleum fails the liabilities and debt criteria.
(These stocks do not meet Graham's Enterprising or NCAV grade criteria either)
For a comprehensive Benjamin Graham investment approach, see "How To Build A Complete Benjamin Graham Portfolio":
http://seekingalpha.co...
--
Serenity Stocks
Why Benjamin Graham Investors Can Ignore What 'Research' Says [View article]
Quoted from "General Portfolio Policy: The Defensive Investor" of The Intelligent Investor:
"It has been an old and sound principle that those who cannot afford to take risks should be content with a relatively low return on their invested funds. From this 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. The minimum return goes to our passive investor, who wants both safety and freedom from concern. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligence and skill."
And from Warren Buffett's Preface to The Intelligent Investor:
"Whether you achieve outstanding results will depend on the effort and intellect you apply to your investments, as well as on the amplitudes of stock-market folly that prevail during your investing career"
More details on Graham strategies on http://seekingalpha.co...
This Benjamin Graham Rule Encourages More Disciplined Investing [View article]
"6. Current price should not be more than 15 times average earnings."
From Chapter 15 of The Intelligent Investor - Stock Selection for the Enterprising Investor:
"issues selling at P/E multipliers under 10"
4 Quick Picks For The Benjamin Graham Defensive Investor [View article]
"A Unique List Of Fully Defensive Graham Stocks"
http://seekingalpha.co...
Was the latest list of Defensive stocks taken from Serenity's screener?
If so, kindly credit Serenity for the same.
Thank you!
For the full Graham investment strategy, see:
"How To Build A Complete Benjamin Graham Portfolio"
http://seekingalpha.co...
--
Serenity Stocks
Would Benjamin Graham Like HollyFrontier? [View article]
Serenity's automated screeners also currently list Weis Markets Inc (WMK) and Helmerich & Payne Inc (HP) as stocks that clear all the above Defensive criteria specified by Graham.
6 S&P 500 Dividend Stocks Undervalued By Free Cash Flow And The Graham Number [View article]
Aflac Inc fails the criteria for liabilities and debt.
Humana Inc fails the criteria for liabilities and dividends.
L-3 Communications Holdings Inc fails the criteria for liabilities, debt and dividends.
Northrop Grumman Corp fails the criteria for liabilities and debt.
Principal Financial Group Inc fails all the criteria other than Sales and Earnings stability.
Torchmark Corp fails the criteria for liabilities and debt.
10 Stocks Meeting Benjamin Graham's Defensive Criteria In 2013 [View article]
Serenity excludes Goodwill and Intangibles while calculating Book value and for INTC, that comes to $7.13.
Hence the lower Graham Number:
GN = sqrt(22.5 x 2.13 EPS x 7.13 BVPS) = $18.49
Book value, also known as Net Tangible Assets, is the theoretical liquidation value of a share and is not traditionally supposed to include Goodwill and Intangibles.
But in practice, this is not always followed.
So Serenity does not use reported Book Values.
This Benjamin Graham Rule Encourages More Disciplined Investing [View article]
Could you please give the source for this rule?
In the Intelligent Investor, Graham recommends 3 different grades of stocks for investment, and 16 different criteria for finding them; including different PE criteria for different grades.
Given below is the link to detailed article on seekingalpha
"How To Build A Complete Benjamin Graham Portfolio"
http://seekingalpha.co...
--
Serenity
10 Non Financial Stocks Trading Below Their Graham Number [View article]
Link: http://bit.ly/RryASs
But to use the Graham Number, a stock must first have uninterrupted earnings for the last 10 years, uninterrupted dividends for the last 20 years, and meet 4 other Defensive criteria.
Cliffs Natural Resources Inc fails all Defensive criteria other than Sales and Earnings growth.
Xerox Corp fails the liabilities, debt and dividend criteria.
Hess Corp fails the liabilities, debt and earnings stability.
And so on...
Serenity gives a detailed Defensive breakup, as well as a complete Graham analysis, for all 4000 NYSE and NASDAQ stocks.
--
Serenity Stocks
How To Build A Complete Benjamin Graham Portfolio [View article]
The lists/tables shown here are screenshots.
To click on a link, you need to go to the actual screener on Serenity.
Link: http://bit.ly/QYCMaj
INTC has a very low P/E to compensate for the high P/B. So its Graham Number, which is a combination of EPS and Book value, is more than its current price.
The Graham Number in this case is eligible for consideration since INTC meets all the other Defensive Criteria.
--
Serenity Stocks
A Complete Benjamin Graham Analysis For LinkedIn [View article]
A businessman interviewing job applications for the position of manager asked each applicant only one question, "What is two plus two?"
The first interviewee was a journalist. His answer was, "Twenty-two".
The second was a social worker. She said, "I don't know the answer but I'm very glad that we had the opportunity to discuss it."
The third applicant was an engineer. He pulled out a slide rule and came up with an answer "somewhere between 3.999 and 4.001."
Next came an attorney. He stated that "in the case of Jenkins vs. the Department of the Treasury, two plus two was proven to be four."
Finally, the businessman interviewed an accountant. The accountant went over to the door, closed it and said in a low voice, "How much do you want it to be?"
The point being, The Market Flash, is that there is a reason GAAP exists.
If one were to do accounting according to one's own rules, almost any number can be shown for any metric. The only constraint would be how much sounds believable.
Quoting here from investopedia:
Link: http://bit.ly/XkmvRP
"It is important as a savvy investor to ensure that the information you are using for comparison follows the GAAP rules and is not the (often more publicized) non-GAAP earnings number."
A Unique List Of Fully Defensive Graham Stocks [View article]
If you need more stocks , please use Graham's Enterprising and NCAV grade stocks instead of partially Defensive stocks.
Link: http://bit.ly/QYCMaj
A stock should completely meet one of the sets of Graham's criteria to be eligible for investment.
Ben Graham's Stock Valuing Formula: It Really Works [View article]
In fact, he gives multiple warnings to never use any such formula.
So if it's working for you, that's actually surprising.
Ben Graham's Stock Valuing Formula: It Really Works [View article]
How Graham, Lynch, And Other Gurus' Strategies Have Quadrupled The Market Since '03 [View article]
Especially Graham?