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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (46717)2/23/2012 7:35:44 PM
From: Paul Senior  Read Replies (2) of 78748
 
Graham number: EKS, I suggest again that you are using the Graham number in a way that's different from what Dr. Graham did. Namely he used it for the Defensive Investor and was applied to stocks with "some earnings for the common stock in each of the past ten years" and "uninterrupted payments ('dividend record') for at least the past 20 years". (Intelligent Investor, pp. 183-184)

Of course, if it works for you in the way you use it, then that's to the good. I myself use heuristics for many of my buys. (I like the word heuristics -- it sounds much more accurate and scientific than just saying 'rule of thumb' or 'educated guess' -g-). I just hope your continuing use of GN for the way you are evaluating stocks doesn't lead anyone to assume this is the way Dr. Graham says to use his formula. Although...given Dr. Graham's changing his ideas very late in his life, he might've applauded you for your efforts/results in the way you use it for selecting new buy entry points.

DVN. A hold for me. I've held shares for many years. If it hits $15+ again on no adverse news, I might add more.
UGI. Would like to continue adding to my position if shares will drop back.
BG. Thanks for updates and your (and Clownbuck and Grommit's) posts re BG. If stock drops back (on no adverse news) to where you guys reported you were buying, I'll add more shares. At the last time, I was too unsure and only bought a very few starter shares. OT: I don't understand the healthiness or unhealthiness of palm oil or the supposed rainforests being destroyed to produce palm oil. I just try to avoid foods that contain this oil.
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