Trust Yourself
A Value Intelligent Investor

Benjamin Graham, considered to be the father of value investing, remains relevant  today. His great work The Intelligent Investor from time to time, a must read book even if you don’t consider yourself a value investor.

Five Graham-inspired stock screens, including one based on his stocks for the defensive investor.

1. Market Capitalization size. A company must have at least $500 million in sales on a
trailing 12-month basis. (Graham used a $100 million minimum and at least $50 million in total assets.)

2. Strong financial condition. A firm must have a "current ratio" (current assets divided by
current liabilities) of at least 2.0. It must also have less long-term debt less than working capital.

3. Dividend Distribution. The company must have paid a dividend for the past seven years. (Graham required 20 years.)

4. Earnings growth. Earnings must have expanded by at least 3% compounded annually over the past seven years. (Graham mandated a one third gain in earnings per share over the latest 10 years.)

5. Price-to-earnings ratio. A stock must have had a 15 or lower average P/E over the past three years. The price-to-earnings ratio times the price-to-book ratio must be less than

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