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2015-04-24

  • SerenityStocks commented on Canadian Value's article 04-24 16:37
    Value Investing Professor Aswath Damodaran – Describing and Analyzing Multiples
    Charlie Munger (Trades, Portfolio) when discussing how to value a business said that he had never seen Warren Buffett (Trades, Portfolio) break out...
    View all 1 comment
    SerenityStocks 04-24 17:37
    • Benjamin Graham - also known as The Dean of Wall Street and The Father of Value Investing - was a scholar and financial analyst who mentored legendary investors such as Warren Buffett (Trades, Portfolio), William J. Ruane, Irving Kahn (Trades, Portfolio) and Walter J. Schloss.

      Warren Buffett (Trades, Portfolio) once wrote a detailed article explaining how Graham's record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham's principles are everlasting. The article is called "The Superinvestors of Graham-and-Doddsville".

      Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written" (in its preface).

      Graham's first recommended strategy - for casual investors - was to invest in Index stocks. 

      For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them. 

      For advanced investors, Graham described various "special situations".

      The first requires almost no analysis, and is easily accomplished today with a good S&P500 Index fund.

      The last requires more than the average level of ability and experience. Such stocks are also not amenable to impartial algorithmic analysis, and require a case-specific approach.

      But Defensive, Enterprising and NCAV stocks can be reliably detected by today's data-mining software, and offer a great avenue for accurate automated analysis and profitable investment.

      Details:

      http://www.gurufocus.com/news/262827/investing-for-beginners-with-benjamin-graham
  • SerenityStocks commented on Grahamites's article 04-24 16:02
    Outcomes Versus Reasons
    One of the things that I find absolutely fascinating in the investing world is that most investors judge whether an investment decision was right or...
    View all 7 comments
    SerenityStocks 04-24 17:02
    • Very nicely written!

      Would highly appreciate your opinion on the following articles:

      http://www.gurufocus.com/news/262827/investing-for-beginners-with-benjamin-graham

      http://www.gurufocus.com/news/229725/analysts-continue-to-use-wrong-benjamin-graham-formula

2015-04-23

  • SerenityStocks commented on cody56's article 04-23 18:28
    Richardson Electronics: A Graham And Schloss Play
    Richardson Electronics (RELL) Price: $8.70/share Market Cap: $119 million NCAV: $166.3 million Mkt Cap/NCAV: 0.71 Cash: $97.2 million S/T...
    View all 1 comment
    SerenityStocks 04-23 19:28
    • Benjamin Graham - once known as The Dean of Wall Street - was a scholar and financial analyst who mentored legendary investors such as Warren Buffett (Trades, Portfolio), William J. Ruane, Irving Kahn (Trades, Portfolio) and Walter J. Schloss.

      Warren Buffett (Trades, Portfolio) once wrote a detailed article explaining how Graham's record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham's principles are everlasting. The article is called "The Superinvestors of Graham-and-Doddsville".

      Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written" (in its preface).

      Graham's first recommended strategy - for casual investors - was to invest in Index stocks. 

      For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them. 

      For advanced investors, Graham described various "special situations".

      The first requires almost no analysis, and is easily accomplished today with a good S&P500 Index fund.

      The last requires more than the average level of experience, intuition and talent. Such stocks are not amenable to impartial algorithmic analysis, and require a case-specific approach.

      But Defensive, Enterprising and NCAV stocks can be reliably detected by today's data-mining software, and offer a great avenue for accurate automated analysis and profitable investment.

      For example, given below are the actual Graham ratings for Richardson Electronics (RELL), with no adjustments other than those for inflation.

      Defensive Graham investment requires that all ratings be 100% or more.

      Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

      Richardson Electronics - Graham Ratings

      Sales | Size (100% ⇒ $500 Million): 27.36%

      Current Assets ÷ [2 x Current Liabilities>: 444.91%

      Net Current Assets ÷ Long Term Debt: 100.00%

      Earnings Stability (100% ⇒ 10 Years): 0.00%

      Dividend Record (100% ⇒ 20 Years): 100.00%

      Earnings Growth (100% ⇒ 30% Growth): 6.41%

      Graham Number ÷ Previous Close: 83.84%

      Not all stocks failing Graham's rules are necessarily bad investments. They may fall under "special situations". Graham's rules are also extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results. Even when stocks don't clear them, Graham's rules give a clear quantifiable measure of a stock's margin of safety.

      Thank you.
  • SerenityStocks commented on Dividends4Life's article 04-23 18:26
    Lockheed Martin Corp. (LMT) Dividend Stock Analysis
    Linked here is a detailed quantitative analysis of Lockheed Martin Corp. (LMT). Below are some highlights from the above linked analysis: Company...
    View all 1 comment
    SerenityStocks 04-23 19:26
    • HFC, RS and UVV are all stocks that have been highlighted as Defensive Graham stocks on Serenity's screeners.

      Benjamin Graham - once known as The Dean of Wall Street - was a scholar and financial analyst who mentored legendary investors such as Warren Buffett (Trades, Portfolio), William J. Ruane, Irving Kahn (Trades, Portfolio) and Walter J. Schloss.

      Warren Buffett (Trades, Portfolio) once wrote a detailed article explaining how Graham's record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham's principles are everlasting. The article is called "The Superinvestors of Graham-and-Doddsville".

      Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written" (in its preface).

      Graham's first recommended strategy - for casual investors - was to invest in Index stocks. 

      For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them. 

      For advanced investors, Graham described various "special situations".

      The first requires almost no analysis, and is easily accomplished today with a good S&P500 Index fund.

      The last requires more than the average level of experience, intuition and talent. Such stocks are not amenable to impartial algorithmic analysis, and require a case-specific approach.

      But Defensive, Enterprising and NCAV stocks can be reliably detected by today's data-mining software, and offer a great avenue for accurate automated analysis and profitable investment.

      For example, given below are the actual Graham ratings for Lockheed Martin Corp (LMT), with no adjustments other than those for inflation.

      Defensive Graham investment requires that all ratings be 100% or more.

      Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

      Lockheed Martin Corp - Graham Ratings

      Sales | Size (100% ⇒ $500 Million): 9,120.00%

      Current Assets ÷ [2 x Current Liabilities>: 55.48%

      Net Current Assets ÷ Long Term Debt: 19.73%

      Earnings Stability (100% ⇒ 10 Years): 100.00%

      Dividend Record (100% ⇒ 20 Years): 100.00%

      Earnings Growth (100% ⇒ 30% Growth): 129.37%

      Graham Number ÷ Previous Close: 24.55%

      Not all stocks failing Graham's rules are necessarily bad investments. They may fall under "special situations". Graham's rules are also extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results. Even when stocks don't clear them, Graham's rules give a clear quantifiable measure of a stock's margin of safety.

      Thank you.
  • SerenityStocks commented on Amber Harris's article 04-23 18:25
    Top Weighted Stocks in Tweedy Browne Global Value Fund's Portfolio
    Tweedy Browne (Trades, Portfolio) Global Value Fund focuses on investing in non-U.S. companies that have long-term growth. The Fund also uses...
    View all 1 comment
    SerenityStocks 04-23 19:24
    • Benjamin Graham - once known as The Dean of Wall Street - was a scholar and financial analyst who mentored legendary investors such as Warren Buffett (Trades, Portfolio), William J. Ruane, Irving Kahn (Trades, Portfolio) and Walter J. Schloss.

      Warren Buffett (Trades, Portfolio) once wrote a detailed article explaining how Graham's record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham's principles are everlasting. The article is called "The Superinvestors of Graham-and-Doddsville".

      Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written" (in its preface).

      Graham's first recommended strategy - for casual investors - was to invest in Index stocks. 

      For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them. 

      For advanced investors, Graham described various "special situations".

      The first requires almost no analysis, and is easily accomplished today with a good S&P500 Index fund.

      The last requires more than the average level of experience, intuition and talent. Such stocks are not amenable to impartial algorithmic analysis, and require a case-specific approach.

      But Defensive, Enterprising and NCAV stocks can be reliably detected by today's data-mining software, and offer a great avenue for accurate automated analysis and profitable investment.

2015-04-20

  • SerenityStocks commented on Thomas Macpherson's article 04-20 15:32
    A Strange and Beautiful Find: EMT and the Platypus
    In the late 18th century Sir Joseph Banks accompanied James Cook on his first journey of exploration visiting Australia, New Zealand, Tahiti and many...
    View all 3 comments
    SerenityStocks 04-20 16:32
    • The Net Current Asset Value (or NCAV/Net-Net) valuation method was indeed developed and recommended by Benjamin Graham. But Graham also recommended in The Intelligent Investor that an NCAV stock have a positive EPS figure to be eligible for investment.

      The positive EPS requirement is the qualitative check for NCAV stocks; and is - if you think about it - a very logical rule. There's really not much point buying a stock for its current assets (cash equivalents), if the company's losing money.

      Graham's first recommended strategy - for casual investors - was to invest in Index stocks. 

      For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them. 

      For advanced investors, Graham described various "special situations".

      The first requires almost no analysis, and is easily accomplished today with a good S&P500 Index fund.

      The last requires more than the average level of experience, intuition and talent. Such stocks are not amenable to impartial algorithmic analysis, and require a case-specific approach.

      But Defensive, Enterprising and NCAV stocks can be reliably detected by today's data-mining software, and offer a great avenue for accurate automated analysis and profitable investment.

      For example, given below are the actual Graham ratings for Manning & Napier Inc (MN), with no adjustments other than those for inflation.

      Defensive Graham investment requires that all ratings be 100% or more.

      Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

      Manning & Napier Inc - Graham Ratings

      Sales | Size (100% ⇒ $500 Million): 81.10%

      Current Assets ÷ [2 x Current Liabilities>: 0.00%

      Net Current Assets ÷ Long Term Debt: 0.00%

      Earnings Stability (100% ⇒ 10 Years): 30.00%

      Dividend Record (100% ⇒ 20 Years): 20.00%

      Earnings Growth (100% ⇒ 30% Growth): 0.00%

      Graham Number ÷ Previous Close: 0.00%

      Not all stocks failing Graham's rules are necessarily bad investments. They may fall under "special situations". Graham's rules are also extremely selective. Graham designed and backtested his framework for over 50 years, to deliver the best possible long-term results. Even when stocks don't clear them, Graham's rules give a clear quantifiable measure of a stock's margin of safety.

      Thank you.
  • SerenityStocks commented on SerenityStocks's article 04-20 15:18
    True Value Investing Includes Quality And Growth
    What does the word "Value" actually mean? When you say something is of value to you, does it only imply easily available? Or inexpensive? Doesn't...
    View all 4 comments
    SerenityStocks 04-20 16:18
    • AlbertaSunwapta,

      Please see "Strategy 1: Zero Effort - Index Funds" in the following article:

      http://www.serenitystocks.com/how-build-complete-benjamin-graham-portfolio
  • SerenityStocks commented on SerenityStocks's article 04-20 15:16
    True Value Investing Includes Quality And Growth
    What does the word "Value" actually mean? When you say something is of value to you, does it only imply easily available? Or inexpensive? Doesn't...
    View all 3 comments
    SerenityStocks 04-20 16:16
    • Thank you, Tom!
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