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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (37339)	4/11/2010 2:21:05 PM
From: Paul Senior	Read Replies (3) of 78744

The author has not summarized the Ben Graham interview right. I just have to go through my little library to find my lost journal issue, the one with that original article. It's a significant reference for me since it has formed the basis of most of my investing in the past many years. It's important because in the article Dr. Graham essentially dismisses the relevance of security analysis (as practiced by him post depression era) for the individual investor. In essence, following Dr. Graham's latest research at that time of the article, it is less of a reliance on individual security analysis and more emphasis on sticking to "one or more" criteria with a sufficient number of diverse stocks. This to concentrate (my words) on portfolio results rather than individual securities themselves. The criteria Dr. Graham suggested - but he specifically did not say these exclusively were the only ones - were, as I interpret the interview, p/e at 7 or below and/or dividend yield (7%), and/or p/bv under 1.2. Also, the time holding he suggested could be 2 or 3 years (not just the two years which he suggested earlier for net-net situations).

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