Graham Security Analysis (Session 1)
Benjamin Graham had a great investment philosophy. Find great companies determine their intrinsic value and then only buy them when they are cheap. Or as Graham puts it: apply a set of standards to...
View ArticleBuy on the Cheap (Price/Earnings) (Session2)
To follow up our Graham intro we will investigate Graham’s first insurance technique of buying on the cheap. Graham used a number of ratios to determine if a company is cheap. The first ratio we need...
View ArticleBuy a Company with a Future (Book Value) (Session 3)
Book Value is a pretty easy one as compared to Price to Earnings. So let’s get into it we will need it for other calculations. What is it? (Total Assets – Intangible Assets (Goodwill) – Total...
View ArticleBuy on the Cheap (Price/Book Ratio) (Session 4)
If you made it through price to earnings ratio, price to book ratio will be a piece of cake. What is it? Market Price per Share BPS otherwise known as (Book Value / Total number of Shares outstanding)...
View ArticleBuy a Company with a Future (Current Ratio) (Session 5)
Current ratio is an important one; it shows us how the company will survive in the short term. As I mentioned earlier there are reasons why the company is currently cheap our job is to figure out why...
View ArticleBuy a Company with a Future (Based on its past) (Session 6)
The ratios we have looked at so far tend to be a snapshot of the current condition of the company and don’t really explore a company’s history. Graham didn’t believe in investing in the next hot...
View ArticleBuy with a solid Dividend (Session 7)
The final page in our series on Graham’s investment theory is dedicated to dividends. I saved the best, and most contentious for last. Investors love to split themselves into groups- technical...
View ArticleBuilding a Simplified Graham Value Stock Screener
I did a search and could not for the life of me find a link to a prebuilt Google screener for Graham’s value investing system. So lets quickly build one: Through the Graham series we said we would only...
View ArticleGraham vs. Greenblatt (Session 1)
Graham passed away in September 21, 1976 well before Joel Greenblatt graduated from Wharton in 1979 but a linkage between the two men’s investment theories is not difficult to find. Greenblatt during...
View ArticleGraham vs. Greenblatt (Session 2) Buy America & Buy Big
Joel Greenblatt is a modern value investor, his approach as we outlined in our previous post was to find value companies like Graham, but he also wanted a company that has potential for the future. The...
View ArticleGraham vs. Greenblatt (Session 3) Return on Capital
Greenblatt in his book The Little Book that Beats the Market advocated a simple method for attaining substantial stock returns. In this series we are looking at the particulars of this investing theory...
View ArticleGraham vs. Greenblatt (Session 4) Buy some cheap earnings
In our last post we looked at Greenblatt’s use of Return on Capital as a means of identifying quality companies that know how to turn a small investment into a substantial return. In this posting we...
View ArticleGraham vs. Greenblatt (Session 5) Bringing it all Together
We made it to the final installment of our Graham vs. Greenblatt series. Throughout the series we examined each of the ratios that Greenblatt recommended in his book The Little Book that Beats the...
View ArticleValue Investing Four Filters
I am always looking for good high quality companies that are trading at a discount. Finding these companies is both challenging and time consuming. Finding cheap companies isn’t hard- finding cheap...
View Article5 Facts about Benjamin Graham
Benjamin Graham is known as the father of value investing and is probably one of the most well read and studied investor of the 20th century. While his most famous work The Intelligent Investor is...
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