All Star Battle: Graham Vs. Piotroski [View article]
Graham recommended 3 different grades of stocks for investment - Defensive, Enterprising and NCAV - and 16 criteria for finding them.
He backtested these criteria for decades before recommending them.
But perhaps the best backtest of all is Buffett's famous speech "The Superinvestors of Graham-and-Doddsville" that meticulously explains why all of Graham's students have been extraordinarily successful.
And 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.
Raytheon Co fails the criteria for liabilities and debt.
Graham Value Stock Portfolio Update [View article]
Your criteria sound very similar to Benjamin Graham's Stock Selection criteria for the Enterprising Investor.
Summarized from CHAPTER 15 of The Intelligent Investor - Stock Selection for the Enterprising Investor: [For issues selling at P/E multipliers under 10] "1-A. Current assets at least 1-1⁄2 times current liabilities. 1-B. Debt not more than 110% of net current assets. 2. Earnings stability: No deficit in the last five years covered in the Stock Guide. 3. Dividend record: Some current dividend. 4. Earnings growth: Last year's earnings more than those of 1966. [Note: This corresponds approximately to the earnings of 2008 today] 5. Price: Less than 120% net tangible assets."
http://seekingalpha.co... gives a list of 5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013:
How To Build A Complete Benjamin Graham Portfolio [View article]
Quoting 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"
4 Outperforming Dividend Stocks Undervalued By 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.
Allstate Corp fails all the criteria other than Sales and Dividend record. Fulton Financial Corp also fails all the criteria other than Sales and Dividend record. Principal Financial Group Inc fails all the criteria other than Sales and Earnings stability. First Interstate Bancsystem Inc fails all six criteria.
Hedge Funds Are Buying These 3 Outperforming Financials Undervalued By 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.
First Citizens BancShares Inc fails the liabilities and debt criteria. Firstmerit Corp fails the earnings growth, liabilities and debt criteria Colony Financial Inc fails all the criteria.
5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013 [View article]
Update:
Hallador Energy Co (HNRG) now meets Graham's Enterprising stock criteria, and Validus Holdings Ltd (VR) no longer does.
The Graham evaluation of a stock changes everyday in accordance with price and financial data changes. Please refer to the Comprehensive Screener to see the latest list of stocks meeting Graham's criteria. Link: http://bit.ly/QYCMaj
5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013 [View article]
However PSEC has been removed from the list because it is not, in fact, an Enterprising Graham stock. A data error was causing it to wrongly satisfy the Enterprising criteria for current assets. Once the error was fixed, it no longer met all the required criteria. The other 5 stocks were not affected by the error.
5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013 [View article]
Hello awg,
Thanks for that information.
If a company is giving better return on investment than average and paying out most of the earnings as dividends, there is nothing to stop investors from reinvesting the dividends themselves. This amounts to the same as the same company giving increased earnings.
Graham's criteria are only designed to find companies that offer superior ROI over time - whether those returns are given as dividends or increased earnings.
In fact, in most ways, returns by way of dividends are better because they put the investor in control of his profits. He gets his ROI immediately and can invest it as he wishes, instead of being dependent on the market to increase its evaluation of the stock.
5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013 [View article]
Thank you for the information, Atkins!
Graham designed his Defensive, Enterprising and NCAV criteria based on nearly 50 years of research on hundreds of stocks. So you'l probably be proved right soon enough.
Benjamin Graham's 4 Commandments Of Defensive Dividend Investing [View article]
richjoy403,
If you're not interested in beating the market (which is actually a very sensible goal), you could simply invest in an index fund and keep up with the average market with nearly no effort.
7 Defensive Investor Quick Picks For March [View article]
Thank you, Clinton!
Serenity just got a full database and code upgrade for 2013. The screeners now check 4700 stocks for Graham's 16 criteria.
The list of fully defensive Graham stocks for 2013 was just published yesterday. http://seekingalpha.co...
Also, unlike the book values on other sources, the ones on Serenity are now calculated excluding Goodwill and other Intangibles. So Serenity's screeners are now even more selective than they were before.
All Star Battle: Graham Vs. Piotroski [View article]
He backtested these criteria for decades before recommending them.
But perhaps the best backtest of all is Buffett's famous speech "The Superinvestors of Graham-and-Doddsville" that meticulously explains why all of Graham's students have been extraordinarily successful.
Raytheon Company Dividend Stock Analysis [View article]
Defensive Price (Graham Number): $0.00
Enterprising Price: -$19.74
NCAV Price: -$28.70
Graham Grade: Ungraded
And 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.
Raytheon Co fails the criteria for liabilities and debt.
Graham Value Stock Portfolio Update [View article]
Summarized from CHAPTER 15 of The Intelligent Investor - Stock Selection for the Enterprising Investor:
[For issues selling at P/E multipliers under 10]
"1-A. Current assets at least 1-1⁄2 times current liabilities.
1-B. Debt not more than 110% of net current assets.
2. Earnings stability: No deficit in the last five years covered in the Stock Guide.
3. Dividend record: Some current dividend.
4. Earnings growth: Last year's earnings more than those of 1966.
[Note: This corresponds approximately to the earnings of 2008 today]
5. Price: Less than 120% net tangible assets."
http://seekingalpha.co... gives a list of 5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013:
3 Stocks You Shouldn't Sell [View article]
Amazon.com Inc
Defensive Price (Graham Number): $0.00
Enterprising Price: -$0.90
NCAV Price: -$6.76
Graham Grade: Ungraded
Intuitive Surgical Inc
Defensive Price (Graham Number): $172.80
Enterprising Price: $99.66
NCAV Price: $35.17
Graham Grade: OK / NCAV
Graham Price: $35.17
Current Price: $509.99
Nike Inc
Defensive Price (Graham Number): $23.67
Enterprising Price: $12.61
NCAV Price: $7.02
Graham Grade: Excellent / Defensive
Graham Price: $23.67
Current Price: $59.67
How To Build A Complete Benjamin Graham Portfolio [View article]
"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"
4 Outperforming Dividend Stocks Undervalued By The Graham Number [View article]
Allstate Corp fails all the criteria other than Sales and Dividend record.
Fulton Financial Corp also fails all the criteria other than Sales and Dividend record.
Principal Financial Group Inc fails all the criteria other than Sales and Earnings stability.
First Interstate Bancsystem Inc fails all six criteria.
International Business Machines Corporation: Dividend Stock Analysis [View article]
Sales: 20,902.00%
Liabilities: 56.66%
Debt: 24.11%
Earnings Stability: 100.00%
Dividend record: 100.00%
Earnings growth: 228.37%
Final Graham Assessment.
Defensive Price (Graham Number): $0.00
Enterprising Price: -$15.23
NCAV Price: -$45.57
Graham Grade: Ungraded
10 Stocks Meeting Benjamin Graham's Defensive Criteria In 2013 [View article]
Please write back if you have any other questions.
Hedge Funds Are Buying These 3 Outperforming Financials Undervalued By The Graham Number [View article]
First Citizens BancShares Inc fails the liabilities and debt criteria.
Firstmerit Corp fails the earnings growth, liabilities and debt criteria
Colony Financial Inc fails all the criteria.
5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013 [View article]
Hallador Energy Co (HNRG) now meets Graham's Enterprising stock criteria, and Validus Holdings Ltd (VR) no longer does.
The Graham evaluation of a stock changes everyday in accordance with price and financial data changes. Please refer to the Comprehensive Screener to see the latest list of stocks meeting Graham's criteria.
Link: http://bit.ly/QYCMaj
5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013 [View article]
Thank you!
5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013 [View article]
Thanks for that information.
If a company is giving better return on investment than average and paying out most of the earnings as dividends, there is nothing to stop investors from reinvesting the dividends themselves. This amounts to the same as the same company giving increased earnings.
Graham's criteria are only designed to find companies that offer superior ROI over time - whether those returns are given as dividends or increased earnings.
In fact, in most ways, returns by way of dividends are better because they put the investor in control of his profits. He gets his ROI immediately and can invest it as he wishes, instead of being dependent on the market to increase its evaluation of the stock.
5 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013 [View article]
Graham designed his Defensive, Enterprising and NCAV criteria based on nearly 50 years of research on hundreds of stocks. So you'l probably be proved right soon enough.
Benjamin Graham's 4 Commandments Of Defensive Dividend Investing [View article]
If you're not interested in beating the market (which is actually a very sensible goal), you could simply invest in an index fund and keep up with the average market with nearly no effort.
7 Defensive Investor Quick Picks For March [View article]
Serenity just got a full database and code upgrade for 2013.
The screeners now check 4700 stocks for Graham's 16 criteria.
The list of fully defensive Graham stocks for 2013 was just published yesterday.
http://seekingalpha.co...
Also, unlike the book values on other sources, the ones on Serenity are now calculated excluding Goodwill and other Intangibles.
So Serenity's screeners are now even more selective than they were before.