Serenity's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/4073601/comments http://seekingalpha.com/article/1432751/comments?source=feed#comment-18832091 18832091
However, do note that the $1,526.34 Million, $784.84 Million and 141.94 Million for XIN on Serenity's data feed also correspond exactly to the balance sheet figures on Google finance.

Also FYI, the Book Value given here is the Tangible Book Value calculated by Serenity, not the reported Book Value which usually includes Goodwill and other Intangibles.]]> Tue, 14 May 2013 21:54:18 -0400
However, do note that the $1,526.34 Million, $784.84 Million and 141.94 Million for XIN on Serenity's data feed also correspond exactly to the balance sheet figures on Google finance.

Also FYI, the Book Value given here is the Tangible Book Value calculated by Serenity, not the reported Book Value which usually includes Goodwill and other Intangibles.]]> http://seekingalpha.com/article/1298941/comments?source=feed#comment-18771771 18771771 WMK) now appears to be a fully defensive Graham stock.]]> Mon, 13 May 2013 13:57:21 -0400 WMK) now appears to be a fully defensive Graham stock.]]> http://seekingalpha.com/article/1393301/comments?source=feed#comment-18395301 18395301
Defensive Price (Graham Number): $0.00
Enterprising Price: -$31.34
NCAV Price: -$59.76
Graham Grade: Ungraded

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.

Verizon Communications Inc fails all criteria other than Sales and Dividend Record.
Sales: 23,170.00%
Liabilities: 39.39%
Debt: 0.00%
Earnings Stability: 40.00%
Dividend Record: 100.00%
Earnings Growth: 23.74%]]> Fri, 03 May 2013 08:10:03 -0400
Defensive Price (Graham Number): $0.00
Enterprising Price: -$31.34
NCAV Price: -$59.76
Graham Grade: Ungraded

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.

Verizon Communications Inc fails all criteria other than Sales and Dividend Record.
Sales: 23,170.00%
Liabilities: 39.39%
Debt: 0.00%
Earnings Stability: 40.00%
Dividend Record: 100.00%
Earnings Growth: 23.74%]]> http://seekingalpha.com/article/1375251/comments?source=feed#comment-18122461 18122461
Aflac Inc fails the criteria for Liabilities and Debt.
Encore Capital Group Inc fails the criteria for Liabilities, Debt and Dividends.
Cardinal Financial Corp fails all criteria other than Earnings Growth and Earnings Stability.
Kronos Worldwide Inc fails all criteria other than Sales and Earnings Growth.
CAI International Inc fails all criteria other than Earnings Growth.]]> Fri, 26 Apr 2013 08:14:05 -0400
Aflac Inc fails the criteria for Liabilities and Debt.
Encore Capital Group Inc fails the criteria for Liabilities, Debt and Dividends.
Cardinal Financial Corp fails all criteria other than Earnings Growth and Earnings Stability.
Kronos Worldwide Inc fails all criteria other than Sales and Earnings Growth.
CAI International Inc fails all criteria other than Earnings Growth.]]> http://seekingalpha.com/article/1360601/comments?source=feed#comment-18101121 18101121
But perhaps Warren Buffett explained it best when he simply said - "the market is manic-depressive".]]> Thu, 25 Apr 2013 17:14:31 -0400
But perhaps Warren Buffett explained it best when he simply said - "the market is manic-depressive".]]> http://seekingalpha.com/article/1360601/comments?source=feed#comment-17993081 17993081
Defensive Price (Graham Number): $0.00
Enterprising Price: -$15.53
NCAV Price: -$27.44
Graham Grade: Ungraded

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.
In addition to having a Graham Number of Zero, Eaton Corporation also fails the criteria for liabilities and debt.

Serenity excludes Goodwill and Intangibles while calculating Book Values and for ETN, such a BVPS evaluates to -$12.94.
Hence the non-existent (Zero) Graham Number for ETN.

GN = sqrt(22.5 x EPS x BVPS) = square root of a negative number for ETN.

Book Value, also known as Net Tangible Assets, is the theoretical liquidation value per share and is not traditionally supposed to include Goodwill and Intangibles.

But in practice, this is not always followed.
So instead of using reported Book Values, Serenity calculates Book Values from balance sheets.]]> Tue, 23 Apr 2013 15:27:11 -0400
Defensive Price (Graham Number): $0.00
Enterprising Price: -$15.53
NCAV Price: -$27.44
Graham Grade: Ungraded

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.
In addition to having a Graham Number of Zero, Eaton Corporation also fails the criteria for liabilities and debt.

Serenity excludes Goodwill and Intangibles while calculating Book Values and for ETN, such a BVPS evaluates to -$12.94.
Hence the non-existent (Zero) Graham Number for ETN.

GN = sqrt(22.5 x EPS x BVPS) = square root of a negative number for ETN.

Book Value, also known as Net Tangible Assets, is the theoretical liquidation value per share and is not traditionally supposed to include Goodwill and Intangibles.

But in practice, this is not always followed.
So instead of using reported Book Values, Serenity calculates Book Values from balance sheets.]]> http://seekingalpha.com/article/1357471/comments?source=feed#comment-17939381 17939381
Serenity excludes Goodwill and Intangibles while calculating Book value and for RTN, such a BVPS evaluates to -$16.45.

Hence the non-existent (Zero) Graham Number for RTN.
GN = sqrt(22.5 x EPS x BVPS) = square root of a negative number for RTN.

Book value, also known as Net Tangible Assets, is the theoretical liquidation value of a share and is not traditionally supposed to include Goodwill and Intangibles.

But in practice, this is not always followed.
So Serenity does not use reported Book Values.]]> Mon, 22 Apr 2013 13:36:38 -0400
Serenity excludes Goodwill and Intangibles while calculating Book value and for RTN, such a BVPS evaluates to -$16.45.

Hence the non-existent (Zero) Graham Number for RTN.
GN = sqrt(22.5 x EPS x BVPS) = square root of a negative number for RTN.

Book value, also known as Net Tangible Assets, is the theoretical liquidation value of a share and is not traditionally supposed to include Goodwill and Intangibles.

But in practice, this is not always followed.
So Serenity does not use reported Book Values.]]> http://seekingalpha.com/article/1357421/comments?source=feed#comment-17925961 17925961
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.]]> Mon, 22 Apr 2013 08:32:05 -0400
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.]]> http://seekingalpha.com/article/1357471/comments?source=feed#comment-17925741 17925741
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.]]> Mon, 22 Apr 2013 08:22:26 -0400
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.]]> http://seekingalpha.com/article/1344261/comments?source=feed#comment-17731231 17731231
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:]]> Wed, 17 Apr 2013 09:34:10 -0400
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:]]> http://seekingalpha.com/article/1342721/comments?source=feed#comment-17685351 17685351
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]]> Tue, 16 Apr 2013 09:14:05 -0400
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]]> http://seekingalpha.com/article/1343451/comments?source=feed#comment-17685011 17685011
Aflac Inc fails the criteria for liabilities and debt.
Humana Inc fails the criteria for liabilities and dividends.
L-3 Communications Holdings Inc fails the criteria for liabilities, debt and dividends.
Northrop Grumman Corp fails the criteria for liabilities and debt.
Principal Financial Group Inc fails all the criteria other than Sales and Earnings stability.
Torchmark Corp fails the criteria for liabilities and debt.]]> Tue, 16 Apr 2013 09:04:08 -0400
Aflac Inc fails the criteria for liabilities and debt.
Humana Inc fails the criteria for liabilities and dividends.
L-3 Communications Holdings Inc fails the criteria for liabilities, debt and dividends.
Northrop Grumman Corp fails the criteria for liabilities and debt.
Principal Financial Group Inc fails all the criteria other than Sales and Earnings stability.
Torchmark Corp fails the criteria for liabilities and debt.]]> http://seekingalpha.com/article/1036121/comments?source=feed#comment-17576711 17576711
"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"]]> Sat, 13 Apr 2013 09:09:37 -0400
"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"]]> http://seekingalpha.com/article/1336101/comments?source=feed#comment-17535441 17535441
Quoted from "General Portfolio Policy: The Defensive Investor" of The Intelligent Investor:

"It has been an old and sound principle that those who cannot afford to take risks should be content with a relatively low return on their invested funds. From this there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run. Our view is different. The rate of return sought should be dependent, rather, on the amount of intelligent effort the investor is willing and able to bring to bear on his task. The minimum return goes to our passive investor, who wants both safety and freedom from concern. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligence and skill."

And from Warren Buffett's Preface to The Intelligent Investor:

"Whether you achieve outstanding results will depend on the effort and intellect you apply to your investments, as well as on the amplitudes of stock-market folly that prevail during your investing career"

More details on Graham strategies on http://seekingalpha.co...]]> Fri, 12 Apr 2013 09:16:34 -0400
Quoted from "General Portfolio Policy: The Defensive Investor" of The Intelligent Investor:

"It has been an old and sound principle that those who cannot afford to take risks should be content with a relatively low return on their invested funds. From this there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run. Our view is different. The rate of return sought should be dependent, rather, on the amount of intelligent effort the investor is willing and able to bring to bear on his task. The minimum return goes to our passive investor, who wants both safety and freedom from concern. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligence and skill."

And from Warren Buffett's Preface to The Intelligent Investor:

"Whether you achieve outstanding results will depend on the effort and intellect you apply to your investments, as well as on the amplitudes of stock-market folly that prevail during your investing career"

More details on Graham strategies on http://seekingalpha.co...]]> http://seekingalpha.com/article/1331721/comments?source=feed#comment-17448041 17448041
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.]]> Wed, 10 Apr 2013 11:02:15 -0400
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.]]> http://seekingalpha.com/article/1326061/comments?source=feed#comment-17347121 17347121
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]]> Mon, 08 Apr 2013 08:20:00 -0400
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]]> http://seekingalpha.com/article/1298941/comments?source=feed#comment-17154941 17154941 Please write back if you have any other questions.]]> Wed, 03 Apr 2013 08:18:33 -0400 Please write back if you have any other questions.]]> http://seekingalpha.com/article/1302351/comments?source=feed#comment-17143001 17143001
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.]]> Tue, 02 Apr 2013 22:33:07 -0400
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.]]> http://seekingalpha.com/article/1314391/comments?source=feed#comment-17142861 17142861
Allstate Corp fails all the criteria other than Sales and Dividend record.
Associated Banc-Corp also fails all the criteria other than Sales and Dividend record.
Fulton Financial Corp also fails all the criteria other than Sales and Dividend record.
Huntington Bancshares Inc also fails all the criteria other than Sales and Dividend record.
Flushing Financial Corp fails all the criteria other than Earnings stability.]]> Tue, 02 Apr 2013 22:27:39 -0400
Allstate Corp fails all the criteria other than Sales and Dividend record.
Associated Banc-Corp also fails all the criteria other than Sales and Dividend record.
Fulton Financial Corp also fails all the criteria other than Sales and Dividend record.
Huntington Bancshares Inc also fails all the criteria other than Sales and Dividend record.
Flushing Financial Corp fails all the criteria other than Earnings stability.]]> http://seekingalpha.com/article/1303771/comments?source=feed#comment-17114611 17114611
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]]> Tue, 02 Apr 2013 11:49:07 -0400
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]]> http://seekingalpha.com/article/1298941/comments?source=feed#comment-16969041 16969041
Serenity excludes Goodwill and Intangibles while calculating Book value and for INTC, that comes to $7.13.
Hence the lower Graham Number:
GN = sqrt(22.5 x 2.13 EPS x 7.13 BVPS) = $18.49

Book value, also known as Net Tangible Assets, is the theoretical liquidation value of a share and is not traditionally supposed to include Goodwill and Intangibles.

But in practice, this is not always followed.
So Serenity does not use reported Book Values.]]> Fri, 29 Mar 2013 00:36:45 -0400
Serenity excludes Goodwill and Intangibles while calculating Book value and for INTC, that comes to $7.13.
Hence the lower Graham Number:
GN = sqrt(22.5 x 2.13 EPS x 7.13 BVPS) = $18.49

Book value, also known as Net Tangible Assets, is the theoretical liquidation value of a share and is not traditionally supposed to include Goodwill and Intangibles.

But in practice, this is not always followed.
So Serenity does not use reported Book Values.]]> http://seekingalpha.com/article/1303771/comments?source=feed#comment-16920171 16920171
Thank you!]]> Thu, 28 Mar 2013 04:37:13 -0400
Thank you!]]> http://seekingalpha.com/article/1303771/comments?source=feed#comment-16916431 16916431
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.]]> Thu, 28 Mar 2013 00:22:38 -0400
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.]]> http://seekingalpha.com/article/1303771/comments?source=feed#comment-16885731 16885731
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.]]> Wed, 27 Mar 2013 12:19:04 -0400
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.]]> http://seekingalpha.com/article/1296131/comments?source=feed#comment-16825431 16825431
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.]]> Tue, 26 Mar 2013 11:02:06 -0400
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.]]> http://seekingalpha.com/article/1243811/comments?source=feed#comment-16815881 16815881
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.]]> Tue, 26 Mar 2013 07:50:27 -0400
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.]]> http://seekingalpha.com/article/1298941/comments?source=feed#comment-16810841 16810841 Tue, 26 Mar 2013 03:04:01 -0400 http://seekingalpha.com/article/1298941/comments?source=feed#comment-16808551 16808551
Serenity just got a full database and code upgrade for 2013.
The screeners now analyze 4700 stocks - up from 4000 last year - hence the larger number of approved Graham stocks.]]> Tue, 26 Mar 2013 00:48:19 -0400
Serenity just got a full database and code upgrade for 2013.
The screeners now analyze 4700 stocks - up from 4000 last year - hence the larger number of approved Graham stocks.]]> http://seekingalpha.com/article/1036121/comments?source=feed#comment-16806591 16806591
Graham's 16 criteria are designed to check all significant aspects of a stock, not just the price.
So Graham's Margin of Safety of safety, in his own words, is designed to ensure:

"(1) a minimum of quality in the past performance and current financial position of the com- pany, and also (2) a minimum of quantity in terms of earnings and assets per dollar of price"

That was his description of the 8 criteria for finding defensive stocks.
One of the biggest myths about Graham is that he only recommended cheap stocks. NCAV stocks were only the last grade of stocks he recommended.

What he actually taught (and practiced) was to find stocks selling for less than they were worth - both quantitatively and qualitatively.]]> Mon, 25 Mar 2013 23:06:21 -0400
Graham's 16 criteria are designed to check all significant aspects of a stock, not just the price.
So Graham's Margin of Safety of safety, in his own words, is designed to ensure:

"(1) a minimum of quality in the past performance and current financial position of the com- pany, and also (2) a minimum of quantity in terms of earnings and assets per dollar of price"

That was his description of the 8 criteria for finding defensive stocks.
One of the biggest myths about Graham is that he only recommended cheap stocks. NCAV stocks were only the last grade of stocks he recommended.

What he actually taught (and practiced) was to find stocks selling for less than they were worth - both quantitatively and qualitatively.]]> http://seekingalpha.com/article/1296131/comments?source=feed#comment-16804791 16804791 http://bit.ly/103PUg7

He wanted to develop theories and techniques of investment that any regular person could use and get similar results.

Buffett also gave a speech (in 1984) about how people have been saying for decades that things have changed, but how Graham's principles will always remain valid.
http://bit.ly/TwFlS8

First principles rarely change with time.

For every action, there will still be an equal and opposite reaction.
And to make money, one still has to first learn how to not lose it.]]> Mon, 25 Mar 2013 22:01:55 -0400 http://bit.ly/103PUg7

He wanted to develop theories and techniques of investment that any regular person could use and get similar results.

Buffett also gave a speech (in 1984) about how people have been saying for decades that things have changed, but how Graham's principles will always remain valid.
http://bit.ly/TwFlS8

First principles rarely change with time.

For every action, there will still be an equal and opposite reaction.
And to make money, one still has to first learn how to not lose it.]]>