Warren Buffett himself says he is 85% Benjamin Graham and 15% Phil Fisher.

Buffett even named his son after Graham, and describes Graham's book The Intelligent Investor as "by far the best book about investing ever written".

Given below is part of the conclusion from the study "The Evolution of the Idea of Value Investing: From Benjamin Graham to Warren Buffett" by Robert F. Bierig, Duke University:

"A [casual] observer of Buffett today would find it difficult to see the Ben Graham influence in many of his activities. However, that influence remains at the core of Buffett’s investment model. Buffett continues to think about stocks as fractional ownership interests in underlying businesses, he continues to operate under the assumption that there is a distinction between price and value, and he continues to search for the largest discrepancy between those two items. In other words, he continues to be a value investor."

NCAV stocks, or Net-Net stocks, are simply the most well-known of 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 did advocate paying more for Quality. His only prerequisite was that there be the Margin of Safety between price and value, whether the value be Qualitative or Quantitative.]]>

Warren Buffett himself says he is 85% Benjamin Graham and 15% Phil Fisher.

Buffett even named his son after Graham, and describes Graham's book The Intelligent Investor as "by far the best book about investing ever written".

Given below is part of the conclusion from the study "The Evolution of the Idea of Value Investing: From Benjamin Graham to Warren Buffett" by Robert F. Bierig, Duke University:

"A [casual] observer of Buffett today would find it difficult to see the Ben Graham influence in many of his activities. However, that influence remains at the core of Buffett’s investment model. Buffett continues to think about stocks as fractional ownership interests in underlying businesses, he continues to operate under the assumption that there is a distinction between price and value, and he continues to search for the largest discrepancy between those two items. In other words, he continues to be a value investor."

NCAV stocks, or Net-Net stocks, are simply the most well-known of 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 did advocate paying more for Quality. His only prerequisite was that there be the Margin of Safety between price and value, whether the value be Qualitative or Quantitative.]]>

Benjamin Graham actually warned against this formula and only used it to show why such oversimplified estimations 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 different categories of stocks - Index, Defensive, Enterprising and NCAV - with different qualitative and quantitative criteria for each category.

For example, given below are the actual Graham ratings for Gilead Sciences Inc (NASDAQ:GILD).

Gilead Sciences Inc - Defensive Graham Ratings

Sales | Size (100% ⇒ $500 Million): 2,240.00%

Current Assets ÷ [2 x Current Liabilities]: 57.50%

Net Current Assets ÷ Long Term Debt: 24.08%

Earnings Stability (100% ⇒ 10 Years): 70.00%

Dividend Record (100% ⇒ 20 Years): 0.00%

Earnings Growth (100% ⇒ 30% Growth): 607.35%

Graham Number ÷ Previous Close: 18.48%

Defensive Graham investment requires that all ratings be at least 100%.

Enterprising Graham investment requires that the ratings be at least - CA/2CL > 75%, NCA/LTD > 90%, EPS Stability > 50%, Div Record > 5% and GN/PC > 137%.

Article 2: http://seekingalpha.co... discusses Graham's actual investment strategies and shows how to apply his seventeen stock selection criteria to 5000 NYSE & NASDAQ stocks today.]]>

Benjamin Graham actually warned against this formula and only used it to show why such oversimplified estimations 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 different categories of stocks - Index, Defensive, Enterprising and NCAV - with different qualitative and quantitative criteria for each category.

For example, given below are the actual Graham ratings for Gilead Sciences Inc (NASDAQ:GILD).

Gilead Sciences Inc - Defensive Graham Ratings

Sales | Size (100% ⇒ $500 Million): 2,240.00%

Current Assets ÷ [2 x Current Liabilities]: 57.50%

Net Current Assets ÷ Long Term Debt: 24.08%

Earnings Stability (100% ⇒ 10 Years): 70.00%

Dividend Record (100% ⇒ 20 Years): 0.00%

Earnings Growth (100% ⇒ 30% Growth): 607.35%

Graham Number ÷ Previous Close: 18.48%

Defensive Graham investment requires that all ratings be at least 100%.

Enterprising Graham investment requires that the ratings be at least - CA/2CL > 75%, NCA/LTD > 90%, EPS Stability > 50%, Div Record > 5% and GN/PC > 137%.

Article 2: http://seekingalpha.co... discusses Graham's actual investment strategies and shows how to apply his seventeen stock selection criteria to 5000 NYSE & NASDAQ stocks today.]]>

The core philosophy of Rand's books is called Objectivism.

Graham recommended analysis using only objective past numbers, instead of subjective future estimates.

Rand said “The hardest thing to explain is the glaringly evident which everybody has decided not to see.”

Graham said "You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."

Rand said "Emotions are not tools of cognition . . . one must differentiate between one’s thoughts and one’s emotions with full clarity and precision."

Graham said "Individuals who cannot master their emotions are ill-suited to profit from the investment process.".

Rand said “A creative man is motivated by the desire to achieve, not by the desire to beat others.”

Graham said "To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks."

There are many more similarities between the two philosophies. But rather than hypothesizing what a John Galt or a Howard Roark might have done, we could simply follow the extremely precise rules that Benjamin Graham himself has set down for selecting stocks.

NCAV stocks are simply the most well-known of Graham's strategies, and the source of the general misconception that Graham only recommended cheap stocks. Benjamin Graham actually recommended different categories of stocks - Index, Defensive, Enterprising and NCAV - with different qualitative and quantitative criteria for each category.

Article 1: http://seekingalpha.co... discusses Graham's 17 stock selection criteria and shows how to apply them to 5000 NYSE & NASDAQ stocks today.

Also, if memory (from a couple of decades ago) serves, Peter Keating and his "second-handers" from The Fountainhead appropriate Howard Roark's innovative design for an important building and build it themselves, after having made grotesque modifications based on their own incompetent understanding of architecture.

Roark then destroys this corruption of his genius, as an expression of the struggle of individualism against collectivism. The Graham we know from his books was perhaps too benign and generous for anything so extreme, but here's something a younger Graham himself might have blown up.

Intrinsic Value = Earnings x (8.5 + 2 x growth)

This is a formula that is often attributed to Graham today. Graham actually warned against this formula. He only used it to show why such growth predictions are unreliable, and as an example of what NOT to do.

But incredibly - due to a minor misprint in recent editions of The Intelligent Investor - most analysts claiming to use Graham's methods today, recommend stocks using this formula, instead of the methods he actually recommended in the "Stock Selection" chapters.

Article 2: http://seekingalpha.co... discusses the issue in detail.]]>

The core philosophy of Rand's books is called Objectivism.

Graham recommended analysis using only objective past numbers, instead of subjective future estimates.

Rand said “The hardest thing to explain is the glaringly evident which everybody has decided not to see.”

Graham said "You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."

Rand said "Emotions are not tools of cognition . . . one must differentiate between one’s thoughts and one’s emotions with full clarity and precision."

Graham said "Individuals who cannot master their emotions are ill-suited to profit from the investment process.".

Rand said “A creative man is motivated by the desire to achieve, not by the desire to beat others.”

Graham said "To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks."

There are many more similarities between the two philosophies. But rather than hypothesizing what a John Galt or a Howard Roark might have done, we could simply follow the extremely precise rules that Benjamin Graham himself has set down for selecting stocks.

NCAV stocks are simply the most well-known of Graham's strategies, and the source of the general misconception that Graham only recommended cheap stocks. Benjamin Graham actually recommended different categories of stocks - Index, Defensive, Enterprising and NCAV - with different qualitative and quantitative criteria for each category.

Article 1: http://seekingalpha.co... discusses Graham's 17 stock selection criteria and shows how to apply them to 5000 NYSE & NASDAQ stocks today.

Also, if memory (from a couple of decades ago) serves, Peter Keating and his "second-handers" from The Fountainhead appropriate Howard Roark's innovative design for an important building and build it themselves, after having made grotesque modifications based on their own incompetent understanding of architecture.

Roark then destroys this corruption of his genius, as an expression of the struggle of individualism against collectivism. The Graham we know from his books was perhaps too benign and generous for anything so extreme, but here's something a younger Graham himself might have blown up.

Intrinsic Value = Earnings x (8.5 + 2 x growth)

This is a formula that is often attributed to Graham today. Graham actually warned against this formula. He only used it to show why such growth predictions are unreliable, and as an example of what NOT to do.

But incredibly - due to a minor misprint in recent editions of The Intelligent Investor - most analysts claiming to use Graham's methods today, recommend stocks using this formula, instead of the methods he actually recommended in the "Stock Selection" chapters.

Article 2: 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.

NCAV stocks, or Net-Net stocks as you refer to them, are simply the most well-known of 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 did advocate paying more for Quality. His only prerequisite was that there be the Margin of Safety between price and value, whether the value be Qualitative or Quantitative.

Article 1: http://seekingalpha.co... discusses all of Graham's investment strategies in detail.

The last of the strategies is "Special Situations". But Graham did not recommend it for the ordinary investor as it supposedly required a high degree of skill, experience and resources. But Buffett (being Buffett) has the skill, experience and resources; and almost all his operations do fall in Graham's "Special Situations" category.

Given below is part of the conclusion from the study "The Evolution of the Idea of Value Investing: From Benjamin Graham to Warren Buffett" by Robert F. Bierig, Duke University:

"A [casual] observer of Buffett today would find it difficult to see the Ben Graham influence in many of his activities. However, that influence remains at the core of Buffett’s investment model. Buffett continues to think about stocks as fractional ownership interests in underlying businesses, he continues to operate under the assumption that there is a distinction between price and value, and he continues to search for the largest discrepancy between those two items. In other words, he continues to be a value investor."

Also, in the "Legacy of Benjamin Graham" video released by the Heilbrunn Center, Buffett explains how Graham was focussed on refining methods that ordinary investors - without specialized access - could apply to achieve results similar to his own (Grahams's).

All of Graham's students follow the same principles, they just apply them in their own ways. Buffett is simply the most visible of them because he's the wealthiest. But the difference between Graham and Buffett is only one of application, not principle.

On a side note:

Intrinsic Value = Earnings x (8.5 + 2 x growth)

This is a formula often attributed to Graham. But 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 2: http://seekingalpha.co... discusses the issue in detail.

Hope this helps!]]>

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

NCAV stocks, or Net-Net stocks as you refer to them, are simply the most well-known of 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 did advocate paying more for Quality. His only prerequisite was that there be the Margin of Safety between price and value, whether the value be Qualitative or Quantitative.

Article 1: http://seekingalpha.co... discusses all of Graham's investment strategies in detail.

The last of the strategies is "Special Situations". But Graham did not recommend it for the ordinary investor as it supposedly required a high degree of skill, experience and resources. But Buffett (being Buffett) has the skill, experience and resources; and almost all his operations do fall in Graham's "Special Situations" category.

Given below is part of the conclusion from the study "The Evolution of the Idea of Value Investing: From Benjamin Graham to Warren Buffett" by Robert F. Bierig, Duke University:

"A [casual] observer of Buffett today would find it difficult to see the Ben Graham influence in many of his activities. However, that influence remains at the core of Buffett’s investment model. Buffett continues to think about stocks as fractional ownership interests in underlying businesses, he continues to operate under the assumption that there is a distinction between price and value, and he continues to search for the largest discrepancy between those two items. In other words, he continues to be a value investor."

Also, in the "Legacy of Benjamin Graham" video released by the Heilbrunn Center, Buffett explains how Graham was focussed on refining methods that ordinary investors - without specialized access - could apply to achieve results similar to his own (Grahams's).

All of Graham's students follow the same principles, they just apply them in their own ways. Buffett is simply the most visible of them because he's the wealthiest. But the difference between Graham and Buffett is only one of application, not principle.

On a side note:

Intrinsic Value = Earnings x (8.5 + 2 x growth)

This is a formula often attributed to Graham. But 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 2: http://seekingalpha.co... discusses the issue in detail.

Hope this helps!]]>

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!]]>

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!]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

Absolutely, frrizzo380.]]>

Absolutely, frrizzo380.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

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.]]>

Serenity, on the other hand, adjusts the Graham criteria only for inflation and nothing else.

For example, your "Methods" page mentions that your valuation requires a Market Cap of $2 billion for the Defensive investor, instead of $100 million in Annual Sales as specified by Graham.

Serenity simply checks for $500 million in Annual Sales instead, adjusting Graham's criteria for CPI/inflation since 1973.

Also, your "Valuation Model" and "Methods" page list the Intrinsic Value formula as one of the methods used.

Intrinsic Value = EPS x (8.5 + 2g)

This formula was actually used by Graham to demonstrate why such oversimplified growth formulas are unreliable. It's only popular because of a printing omission in newer editions of The Intelligent Investor.

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

Graham actually recommended 8 criteria for Defensive stocks and 7 criteria for Enterprising stocks in The Intelligent Investor, as explained in http://seekingalpha.co...

Does the ModernGraham approach consider these 15 criteria?

Annual Sales is the only one of them listed on ModernGraham's "Methods" page and as mentioned, it has been replaced with Market Cap.

Today's markets are truly more competitive. Only a handful of the 5000 stocks listed on Serenity completely clear any of the sets of Graham criteria.

But Serenity's screeners also allow for selection of stocks clearing all the Qualitative criteria, and a percentage of the Quantitative (EPS/BVPS) criteria.

Or any combination of Qualitative and Quantitative Graham criteria.

This allows for a selection of stocks meeting Graham's criteria as closely as possible.]]>

Serenity, on the other hand, adjusts the Graham criteria only for inflation and nothing else.

For example, your "Methods" page mentions that your valuation requires a Market Cap of $2 billion for the Defensive investor, instead of $100 million in Annual Sales as specified by Graham.

Serenity simply checks for $500 million in Annual Sales instead, adjusting Graham's criteria for CPI/inflation since 1973.

Also, your "Valuation Model" and "Methods" page list the Intrinsic Value formula as one of the methods used.

Intrinsic Value = EPS x (8.5 + 2g)

This formula was actually used by Graham to demonstrate why such oversimplified growth formulas are unreliable. It's only popular because of a printing omission in newer editions of The Intelligent Investor.

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

Graham actually recommended 8 criteria for Defensive stocks and 7 criteria for Enterprising stocks in The Intelligent Investor, as explained in http://seekingalpha.co...

Does the ModernGraham approach consider these 15 criteria?

Annual Sales is the only one of them listed on ModernGraham's "Methods" page and as mentioned, it has been replaced with Market Cap.

Today's markets are truly more competitive. Only a handful of the 5000 stocks listed on Serenity completely clear any of the sets of Graham criteria.

But Serenity's screeners also allow for selection of stocks clearing all the Qualitative criteria, and a percentage of the Quantitative (EPS/BVPS) criteria.

Or any combination of Qualitative and Quantitative Graham criteria.

This allows for a selection of stocks meeting Graham's criteria as closely as possible.]]>

Family Dollar Stores Inc - Final Graham Assessment

Defensive Price (Graham Number): $32.60

Enterprising Price (Serenity Number): $23.81

NCAV Price: -$2.21

Qualitative Result: Good / Enterprising

Graham Price: $23.81

Previous Close: $61.33

Quantitative Result: 38.82%

Gap Inc - Final Graham Assessment

Defensive Price (Graham Number): $19.04

Enterprising Price (Serenity Number): $13.90

NCAV Price: -$0.80

Qualitative Result: Good / Enterprising

Graham Price: $13.90

Previous Close: $39.67

Quantitative Result: 35.04%

Ralph Lauren Corporation - Final Graham Assessment

Defensive Price (Graham Number): $76.98

Enterprising Price (Serenity Number): $56.22

NCAV Price: $14.35

Qualitative Result: Good / Enterprising

Graham Price: $56.22

Previous Close: $158.86

Quantitative Result: 35.39%

(NYSE:BGS) and (NYSE:EMC) do not even clear the Qualitative Enterprising criteria.

Please note that this does not mean 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.

But their selectivity is what makes the Graham criteria unique. It would be better to broaden the scope of one's search, than to tone down the criteria, to find stocks that meet them.

http://seekingalpha.co... shows how to search through 5000 NYSE & NASDAQ stocks, to find ones that meet Graham’s actual criteria as closely as possible.]]>

Family Dollar Stores Inc - Final Graham Assessment

Defensive Price (Graham Number): $32.60

Enterprising Price (Serenity Number): $23.81

NCAV Price: -$2.21

Qualitative Result: Good / Enterprising

Graham Price: $23.81

Previous Close: $61.33

Quantitative Result: 38.82%

Gap Inc - Final Graham Assessment

Defensive Price (Graham Number): $19.04

Enterprising Price (Serenity Number): $13.90

NCAV Price: -$0.80

Qualitative Result: Good / Enterprising

Graham Price: $13.90

Previous Close: $39.67

Quantitative Result: 35.04%

Ralph Lauren Corporation - Final Graham Assessment

Defensive Price (Graham Number): $76.98

Enterprising Price (Serenity Number): $56.22

NCAV Price: $14.35

Qualitative Result: Good / Enterprising

Graham Price: $56.22

Previous Close: $158.86

Quantitative Result: 35.39%

(NYSE:BGS) and (NYSE:EMC) do not even clear the Qualitative Enterprising criteria.

Please note that this does not mean 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.

But their selectivity is what makes the Graham criteria unique. It would be better to broaden the scope of one's search, than to tone down the criteria, to find stocks that meet them.

http://seekingalpha.co... shows how to search through 5000 NYSE & NASDAQ stocks, to find ones that meet Graham’s actual criteria as closely as possible.]]>

The discussion on the Graham selling strategy should be useful to other readers too.]]>

The discussion on the Graham selling strategy should be useful to other readers too.]]>

The earlier comment was not meant to imply that (K) is a bad investment because it doesn't clear the Graham criteria. The Graham criteria are just extremely selective. Only stocks of high investment quality selling at attractive price ratios clear them.

But referring to the Graham Number in isolation without the accompanying six qualitative criteria can be misleading.]]>

The earlier comment was not meant to imply that (K) is a bad investment because it doesn't clear the Graham criteria. The Graham criteria are just extremely selective. Only stocks of high investment quality selling at attractive price ratios clear them.

But referring to the Graham Number in isolation without the accompanying six qualitative criteria can be misleading.]]>

There is no reference to any such rule in The Intelligent Investor, or any of Graham's interviews. Please be advised that many such misconceptions are often wrongly attributed to Graham. Here's another example - http://seekingalpha.co...

Here are Graham's actual notes on selling:

"the only principle of timing that has ever worked well consistently is to buy common stocks at such times as they are cheap by analysis, and to sell them at such times as they are dear, or at least no longer cheap, by analysis."

- Lecture Number Ten, The Rediscovered Benjamin Graham Lectures

"buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies."

- The Investor and Market Fluctuations, The Intelligent Investor

"even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonably priced"

- Stock Selection for the Defensive Investor, The Intelligent Investor

And here is an important addendum:

"The intelligent investor must carefully evaluate the costs of trading and taxes before attempting to take advantage of any price discrepancy—and should never count on being able to sell for the exact price currently quoted in the market."

- Things to Consider About Per-Share Earnings, The Intelligent Investor

There are numerous such references and the underlying principle in all of them is consistent. The investor is to run the numbers for the Graham portfolio every year, and replace any stock that no longer clears the Graham criteria - either due to price appreciation or company deterioration - with a new stock that does.

If the Graham numbers were run rigorously earlier, the latter scenario - company deterioration - should be unlikely. Graham's Margin of Safety requirements are very thorough. That's why it's so difficult to find stocks that meet them in the first place.]]>

There is no reference to any such rule in The Intelligent Investor, or any of Graham's interviews. Please be advised that many such misconceptions are often wrongly attributed to Graham. Here's another example - http://seekingalpha.co...

Here are Graham's actual notes on selling:

"the only principle of timing that has ever worked well consistently is to buy common stocks at such times as they are cheap by analysis, and to sell them at such times as they are dear, or at least no longer cheap, by analysis."

- Lecture Number Ten, The Rediscovered Benjamin Graham Lectures

"buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies."

- The Investor and Market Fluctuations, The Intelligent Investor

"even defensive portfolios should be changed from time to time, especially if the securities purchased have an apparently excessive advance and can be replaced by issues much more reasonably priced"

- Stock Selection for the Defensive Investor, The Intelligent Investor

And here is an important addendum:

"The intelligent investor must carefully evaluate the costs of trading and taxes before attempting to take advantage of any price discrepancy—and should never count on being able to sell for the exact price currently quoted in the market."

- Things to Consider About Per-Share Earnings, The Intelligent Investor

There are numerous such references and the underlying principle in all of them is consistent. The investor is to run the numbers for the Graham portfolio every year, and replace any stock that no longer clears the Graham criteria - either due to price appreciation or company deterioration - with a new stock that does.

If the Graham numbers were run rigorously earlier, the latter scenario - company deterioration - should be unlikely. Graham's Margin of Safety requirements are very thorough. That's why it's so difficult to find stocks that meet them in the first place.]]>

Given below are the Defensive Graham ratings for Kellogg Company (k).

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%.

Sales | Size: 2,958.00%

Current Assets / Current Liabilities: 42.59%

Current Assets / Long Term Debt: 0.00%

Earnings Stability: 100.00%

Dividend Record: 100.00%

Earnings Growth: 133.08%

Graham Number / Current Price: 0.00%

The final Graham Assessment for Kellogg Company is also given below.

The Quantitative Result for a stock has to be 100% for true Graham investment (Quantitative Result = Graham Price ÷ Previous Close).

Defensive Price (Graham Number): $0.00

Enterprising Price (Serenity Number): $0.00

NCAV Price: -$23.88

Qualitative Result: OK / NCAV

Graham Price: $0.00

Previous Close: $66.05

Quantitative Result: 0.00%

Since Kellogg Company has no tangible Book Value, it has Defensive and Enterprising prices of Zero. It also has a negative NCAV value.

The actual Graham stock selection criteria are extremely selective. Only stocks of high investment quality selling at attractive price ratios clear them.]]>

Given below are the Defensive Graham ratings for Kellogg Company (k).

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%.

Sales | Size: 2,958.00%

Current Assets / Current Liabilities: 42.59%

Current Assets / Long Term Debt: 0.00%

Earnings Stability: 100.00%

Dividend Record: 100.00%

Earnings Growth: 133.08%

Graham Number / Current Price: 0.00%

The final Graham Assessment for Kellogg Company is also given below.

The Quantitative Result for a stock has to be 100% for true Graham investment (Quantitative Result = Graham Price ÷ Previous Close).

Defensive Price (Graham Number): $0.00

Enterprising Price (Serenity Number): $0.00

NCAV Price: -$23.88

Qualitative Result: OK / NCAV

Graham Price: $0.00

Previous Close: $66.05

Quantitative Result: 0.00%

Since Kellogg Company has no tangible Book Value, it has Defensive and Enterprising prices of Zero. It also has a negative NCAV value.

The actual Graham stock selection criteria are extremely selective. Only stocks of high investment quality selling at attractive price ratios clear them.]]>

CAZFF is a speculative stock, not a value investment.

At least not Value as defined by the Founder of Value Investing whom the article refers to.]]>

CAZFF is a speculative stock, not a value investment.

At least not Value as defined by the Founder of Value Investing whom the article refers to.]]>

Sales | Size: 1.66%

Current Assets / Current Liabilities: 72.35%

Current Assets / Long Term Debt: 21.19%

Earnings Stability: 0.00%

Dividend Record: 0.00%

Earnings Growth: 0.00%

Graham Number / Current Price: 0.00%

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%.

Benjamin Graham was the founder of Value Investing, as mentioned in the original article. So it is important to note that - qualitatively or quantitatively - CAZFF is far from a recommended value investment as seen by Graham's methods.]]>

Sales | Size: 1.66%

Current Assets / Current Liabilities: 72.35%

Current Assets / Long Term Debt: 21.19%

Earnings Stability: 0.00%

Dividend Record: 0.00%

Earnings Growth: 0.00%

Graham Number / Current Price: 0.00%

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%.

Benjamin Graham was the founder of Value Investing, as mentioned in the original article. So it is important to note that - qualitatively or quantitatively - CAZFF is far from a recommended value investment as seen by Graham's methods.]]>