Benjamin Graham Value Investing Tutorial



Benjamin Graham Value Investing Tutorial: Father of value investing Warren Buffet's mentor Value investing: - Quality - Cheap - Margin of Safety Defensive stocks - $500 million of annual sales - Current assets 2x current liabilities - Long-term debt less than current assets - 10 years of positive earnings - 20 years of dividends - Increase of at one-third in EPS in the past 10 years - PE less than 15 times average earnings - Price less than 1-1 1/2 times the book value - As a rule of thumb, we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5 Graham number = square root of 22.5 * EPS * BVPS Price must be less than that number - 10 stocks 10% weighting each Enterprising stocks - Current assets greater than 1 1/2 times current liabilities - Debt not more than 110% of net current assets. - Earnings stability: No deficit in the last five years - Some current dividend - PE under 10x - Earnings growth: Last year's earnings more than those of 5 years ago - Price: less than 120% net tangible assets TNAV - The product of the multiplier times the ratio of price to book value should not exceed 12 Serenity Number = sq. root of 12 * EPS * BVPS - 20 stocks 5% weighting each Links: What is Value Investing?: https://youtu.be/KfDB9e_cO4k?list=PLCHlbAWULxWLIC4gHzVKnW_CmF2GHTJsx How to Invest Like Warren Buffet: https://youtu.be/Nbiib0IBGZY Value Investing Framework: https://youtu.be/-nG06WHKYRg?list=PL8yf5ZvJVVJXLYRAg8n5mS_gxV_Mtw1LG Benjamin Graham The Intelligent Investor: https://youtu.be/wOFF_f7iS00?list=PL6s5d6PHFHLGLK45JVish0BDRKO_WX-Yd

Comments

  1. Great video, and very informative. What screening tool did you use to run that search on the stocks for their Price/Earnings ratio and so forth?
  2. Check out Mike Maloney he called the 2007 housing crash back in 2005.

    He is now saying gold and silver are amazing value.

    I am personally heavily invested in gold and silver because stocks, bonds and housing is very priced.
  3. I did the P/E 15 x D/A 1.5 = 22.5 or less calations for gold mining stocks complete fail.


Additional Information:

Visibility: 1966

Duration: 31m 41s

Rating: 11