I want to buy stocks that meet Benjamin Graham's criteria for the Defensive Investor:
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Adequate Size of the Enterprise - All our minimum figures must be arbitrary and especially in the matter of size required. not less than $100 million of annual sales for an industrial company and, not less than $50 million of total assets for a public utility
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Sufficiently Strong Financial Condition - For industrial companies current assets should be at least twice current liabilities. Also, longterm debt should not exceed the net current assets (or “working capital”). For public utilities the debt should not exceed twice the stock equity (at book value).
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Earnings Stability - Some earnings for the common stock in each of the past ten years.
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Dividend Record - Uninterrupted payments for at least the past 20 years.
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Earnings Growth - A minimum increase of at least one-third in per-share earnings in the past ten years using three-year averages at the beginning and end.
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Moderate Price/Earnings Ratio - Current price should not be more than 15 times average earnings of the past three years.
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Moderate Ratio of Price to Assets - Current price should not be more than 11⁄2 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. I suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5 (It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
anyway, how do I find companies that meet a good chunk of the criteria?
Submitted October 31, 2017 at 09:17PM by LeviV123 http://ift.tt/2hs8rDX
