Over the last year and few months I wrote a couple of posts high lighting the famous value investor Ben Graham titled "A Few More Ben Graham Nuggets" and "Ben Graham Nuggets Part 2". Both post high lighted a basket of seven stocks, notice the number... "7"... Lucky number seven (ha ha).
For those not familiar with Ben Graham, here is a quick catch up. Graham is considered the Father of security analysis and value investing as practiced by many value investors today. He wrote two best selling books "Security Analysis" (1934) and "The Intelligent Investor" (1949) that are still in print today. He also ran a money management firm called Graham- Newman and taught at Columbia Business School. Among some of Grahams disciples are Walter Schloss, Irving Kahn and the most famous Warren Buffett.
All the issues mentioned met the following criteria:
- Current ratio of 1.5 or better
- A Book Value of 1.5 or less
- A p/e ratio under 15
- Positive eps growth over last 5 years
- Very low or NO debt
- Pay a dividend
These are not dyed- in- the- wool Ben Graham screening techniques, but rather based on Graham's many years of teaching, writing, and investing. However these 14 stocks mentioned fall under bargain issues. Their are many ways for screening when searching for value stocks, such as earnigs yield used by Joel Greenblatt of Gotham Capital and "The Little Book That Beats The Market". Their is also CROIC (cash return on invested capital) coined by Joe Ponzio over at FWallStreet.
Company | Ticker Symbol | Closing price on Oct 30Th 2008 $ | Closing price on March 24Th 2010 $ | Cumulative Return | ||
Abercrombie & Fitch | ANF | 27.06 | 44.38 | +64.01% | ||
Ashland | ASH | 21.98 | 53.43 | +143.08% | ||
Bel Fuse | BELFB | 18.70 | 22.04 | +17.86% | ||
Movado Group | MOV | 14.29 | 11.79 | -17.49% | ||
Nam Tai Electronics | NTE | 7.28 | 4.91 | -32.55% | ||
Seaboard Corp | SEB | 1098.00 | 1389.75 | +26.57% | ||
Thor Industries | THO | 17.50 | 31.78 | +81.60% | ||
Total Cumulative Return Graham Nuggets | +40.19% return | S&P Index cumulative return Oct 30Th 2008 thru Mar 24Th 2010 954.09-1167.72 | +22.40% return |
Company | Ticker Symbol | Closing price on Dec 10Th 2008 $ | Closing price on March 24Th 2010 $ | Cumulative Return | ||
Intersil Corp. | ISIL | 9.36 | 14.74 | +57.48% | ||
Lufkin Industries | LUFK | 35.26 | 79.48 | +125.41% | ||
bebe stores | BEBE | 6.64 | 9.40 | +41.57% | ||
Heidrick & Struggles | HSII | 20.66 | 28.21 | +36.54% | ||
Titanium Metals | TIE | 8.54 | 16.71 | +95.67 | ||
Williams-Sonoma | WSM | 8.59 | 27.72 | +222.70% | ||
Williams Pipeline | WMZ | 14.35 | 30.14 | +110.03 | ||
Total Cumulative Return Graham Nuggets | +98.49% return | S&P Index cumulative return Dec 10Th 2008 thru Mar 24Th 2010 899.24- 1167.72 | +29.90% return |
As you can see by the results that these portfolios based on Ben Graham and Value Investing techniques smashed the market returns. Keep in mind that these techniques may be more favorable during down markets or markets with much volatility.
* returns do not take into the account of any DIVIDENDS paid out
dividends add to total return
Author currently long SEB
Great Blog, Plese post more articles
ReplyDeleteThanks for the kind words.
ReplyDeleteJust wanted to let people know, I’ve started a forum for value investors. This is not a business, the site will never be monetized (purely fun.).
ReplyDeletehttp://letstalkvalue.com
Thanks!
This comment has been removed by a blog administrator.
ReplyDeleteYou have created a nice post, i wish you good luck for all of your future post.
ReplyDeleteSearch Engine Marketing Company
Search Engine Optimizers | Search Engine Promotion
Search Engine Marketing | Search Engine Rankings
SEO Content Writing | SEO Services
Ecommerce Search Engine Optimization
Search Engine Keyword Ranking
Real Estate Search Engine Optimization | SEO Expert
seo | Iftekhar Ahmed
Web Directory | Business Web Directory
Arts Web Directory | Blogs Web Directory
Business Web Directory | Computers Web Directory
Health Web Directory | Games Web Directory
Shopping Web Directory | Sports Web Directory
Water Filters and Water Purification Systems
Water Purification Systems | Water Filter Cartridges
Ultra Violet Lamps | Whole House Filtration
Reverse Osmosis Water Filters Systems
Water Filters Karachi
Iftekhar Ahmed: SEO Expert, SEO Consultant, SEO Strategist
SEO Consultant
SEO Expert
SEO Karachi
SEO Pakistan
SEO Specialist
SEO Strategist
Thank you for sharing this blog. Defined in a excitable manner..
ReplyDeleteThanks with regards: MCX Gold Tips
It's glad to see good information being convey. Its a very nice written, and I really like this blog. Thank you for sharing this info.
ReplyDeleteThanks
free tips
This is one of the good articles you can find in the net explaining everything in detail regarding the topic. I thank you for taking your time sharing your thoughts and ideas to a lot of readers out there.
ReplyDeleteGlad to hear that you are stable financially. I am sure you will manage to start saving more, and I am eager to read about it on this blog in the future =)
ReplyDeleteRegards: MCX Share Price, MCX Share Live Price
This is a really good read for me. Must agree that you are one of the best bloggers I ever saw. Thanks for posting this informative article.
ReplyDeleteThe blog is absolutely fantastic. Lots of great information and inspiration..
ReplyDeleteWeb Design Company Bangalore
Web Designing Bangalore
Web Designer Bangalore
Your blog information is so good and awesome.................
ReplyDeleteStock Market Tips