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  • 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

    "How To Build A Complete Benjamin Graham Portfolio"
    http://seekingalpha.co...

    --
    Serenity
    Dec 31 10:12 AM | 2 Likes Like |Link to Comment
  • 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.

    --
    Serenity Stocks
    Dec 31 09:54 AM | 2 Likes Like |Link to Comment
  • How To Build A Complete Benjamin Graham Portfolio [View article]
    A lot of people are probably already doing so, freeman8201.
    Maybe that's exactly why it meets Graham's criteria.

    Again, the reason Graham - and his followers like Buffett - do better than others is that they follow strategies that others don't.
    They would buy stocks like DMND when others would be afraid to.

    As Buffett said:
    "Be fearful when others are greedy, and be greedy when others are fearful"

    --
    Serenity Stocks
    Nov 30 02:36 AM | 2 Likes Like |Link to Comment
  • 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.

    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."
    Nov 17 04:11 AM | 2 Likes Like |Link to Comment
  • A Unique List Of Fully Defensive Graham Stocks [View article]
    Thank you Vorgriff!

    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.
    Oct 14 12:33 AM | 2 Likes Like |Link to Comment
  • 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.
    Sep 6 09:48 AM | 2 Likes Like |Link to Comment
  • Ben Graham's Stock Valuing Formula: It Really Works [View article]
    Graham never intended this growth formula to actually be used to evaluate stocks. This is a very common but dangerous misconception.
    Sep 6 03:00 AM | 2 Likes Like |Link to Comment
  • How Graham, Lynch, And Other Gurus' Strategies Have Quadrupled The Market Since '03 [View article]
    Can you share some more details on how you were implementing these strategies?
    Especially Graham?
    Aug 9 09:40 AM | 2 Likes Like |Link to Comment
  • 5 Undervalued Companies For The Enterprising Investor Near 52-Week Lows [View article]
    Dear Readers,

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

    On the other hand, he unequivocally recommends the methods in the two Stock Selection chapters.

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

    Thank you!
    Aug 14 10:22 AM | 1 Like 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
  • 6 Big Banking Stocks Trading 25% Below Their Graham Number [View article]
    If one were to invest based solely on the Graham Number, Serenity's screeners currently list 580 NYSE and NASDAQ stocks selling below their Graham Numbers; 270 of them 25% below.

    But before being checked against the Graham Number, Benjamin Graham required that a stock first meet 6 other Qualitative Defensive criteria. None of these stocks meet a complete set of Graham criteria for Defensive, Enterprising or NCAV investment.

    For example, given below are the Graham ratings for Goldman Sachs Group Inc (NYSE:GS).
    Sales | Size: 6,842.00%
    Current Assets / Current Liabilities: 0.00%
    Current Assets / Long Term Debt: 0.00%
    Earnings Stability: 100.00%
    Dividend Record: 75.00%
    Earnings Growth: 63.34%
    Graham Number / Current Price: 142.90%

    Trading 25% below the Graham Number just means that these stocks score more than 133% on the last rating.

    True Defensive Graham investment requires all the ratings to be at least 100%.
    True 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%.

    Please note that this does not necessarily mean that these stocks are bad investments. The actual Graham criteria are just extremely selective. Only stocks of high investment quality selling at attractive price ratios clear them.

    However, their selectivity is what makes the Graham criteria unique. It would be better to broaden the scope of one's search, than to use the criteria incompletely.

    http://seekingalpha.co... shows how to search through 5000 NYSE & NASDAQ stocks, to find ones that meet the actual Graham criteria as closely as possible.
    Jul 19 11:20 AM | 1 Like Like |Link to Comment
  • Investing For Beginners With Benjamin Graham [View article]
    Thank you for your insightful comments, drhay53.

    The discussion on the Graham selling strategy should be useful to other readers too.
    Jul 3 10:10 PM | 1 Like Like |Link to Comment
  • 5 Undervalued Companies With A High Dividend Yield For The Enterprising Investor [View article]
    Given below are the Defensive Graham ratings for the above stocks.

    Defensive Graham investment requires all the ratings to be at least 100%.
    Enterprising Graham investment requires the ratings to be at least - Assets / Liabilities: 75%, Assets / Debt: 90%, Earnings Stability: 50%, Dividend Record: 5% and Graham Number / Price: 137%.

    Ford Motor Company - Defensive Graham Ratings
    Sales: 29,384.00%
    Assets / Liabilities: 102.23%
    Assets / Debt: 101.06%
    Earnings Stability: 50.00%
    Dividend Record: 10.00%
    Earnings Growth: 83.46%
    Graham Number / Price: 91.25%

    International Paper Co - Defensive Graham Ratings
    Sales: 5,816.00%
    Assets / Liabilities: 88.01%
    Assets / Debt: 44.16%
    Earnings Stability: 50.00%
    Dividend Record: 100.00%
    Earnings Growth: 87.09%
    Graham Number / Price: 44.63%

    Gannett Co. Inc - Defensive Graham Ratings
    Sales: 1,032.00%
    Assets / Liabilities: 95.49%
    Assets / Debt: 24.72%
    Earnings Stability: 50.00%
    Dividend Record: 100.00%
    Earnings Growth: 25.93%
    Graham Number / Price: 0.00%

    Kla-tencor Corp - Defensive Graham Ratings
    Sales: 568.00%
    Assets / Liabilities: 252.55%
    Assets / Debt: 466.95%
    Earnings Stability: 40.00%
    Dividend Record: 45.00%
    Earnings Growth: 170.82%
    Graham Number / Price: 55.51%

    Fifth Third Bancorp - Defensive Graham Ratings
    Sales: 1,358.00%
    Assets / Liabilities: 0.00%
    Assets / Debt: 0.00%
    Earnings Stability: 50.00%
    Dividend Record: 100.00%
    Earnings Growth: 52.55%
    Graham Number / Price: 110.73%

    The final Assessment for the stocks is also given below.
    The Quantitative Result for a stock has to be 100% for true Graham investment (Quantitative Result = Graham Price / Previous Close).

    Ford Motor Company - Final Graham Assessment
    Defensive Price (Graham Number): $15.49
    Enterprising Price (Serenity Number): $11.31
    NCAV Price: -$6.04
    Qualitative Result: Good / Enterprising
    Graham Price: $11.31
    Previous Close: $16.97
    Quantitative Result: 66.65%

    International Paper Co - Final Graham Assessment
    Defensive Price (Graham Number): $21.67
    Enterprising Price (Serenity Number): $15.82
    NCAV Price: -$33.00
    Qualitative Result: OK / NCAV
    Graham Price: $0.00
    Previous Close: $48.55
    Quantitative Result: 0.00%

    Gannett Co. Inc - Final Graham Assessment
    Defensive Price (Graham Number): $0.00
    Enterprising Price (Serenity Number): $0.00
    NCAV Price: -$20.32
    Qualitative Result: OK / NCAV
    Graham Price: $0.00
    Previous Close: $29.19
    Quantitative Result: 0.00%

    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: $69.44
    Quantitative Result: 22.16%

    Fifth Third Bancorp - Final Graham Assessment
    Defensive Price (Graham Number): $23.76
    Enterprising Price (Serenity Number): $17.35
    NCAV Price: -$136.66
    Qualitative Result: OK / NCAV
    Graham Price: $0.00
    Previous Close: $21.46
    Quantitative Result: 0.00%

    http://seekingalpha.co... given a detailed tutorial on finding stocks meeting Graham's actual criteria today.
    Jun 25 10:50 AM | 1 Like Like |Link to Comment
  • 7 Defensive Investor Quick Picks For March [View article]
    Hello findrichard,

    That is exactly what Serenity's stock screeners do.

    Two entire chapters of The Intelligent Investor are dedicated to methods that Graham recommends for investors:

    1. Chapter 14: Stock Selection for the Defensive Investor, and
    2. Chapter 15: Stock Selection for the Enterprising Investor

    The sixteen criteria mentioned in those chapters are designed to verify all aspects of a stock before investment. http://seekingalpha.co... lists all sixteen criteria, and gives step-by-step instructions on how to find stocks that meet them.
    May 27 11:44 PM | 1 Like Like |Link to Comment
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