Is The Graham Number Still Relevant Today?

Sep. 12, 2016 10:34 AM ET
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Benjamin Graham is known as the 'Dean of Wall Street'. He is the father of value investing and mentor to Warren Buffett.

Graham did more than mentor and think about investing philosophy. He was a phenomenal investor in his own right. Graham's investment partnership average returns of around 20% a year - for 20 years. 20% returns over 20 years turns $1 into over $38. Graham's investment methods worked amazingly well… From 1936 to 1956 when he operated his partnership.

Do Graham's methods still work well today?

Graham had several different quantitative screening methods to determine which stocks are trading at attractive valuations.

This article applies 'the Graham Number' (one of his formulas) to the S&P 500.

Click this link to continue reading this article (it is a guest post by Ben Reynolds) on Investing for Beginners.

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