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41 Deep Value Stocks Meeting Benjamin Graham Standards

Benjamin Graham is the grandfather of value investing and mentor of Warren Buffett who become popular with his value orientated dividend growth approach.

One question I ask myself often is what stocks Benjamin Graham would find if my dividend growth screener doesn't deliver good results for long-term orientated income investors.


I found a great article on Value walk that discussed the Graham Approach and delivered nice results which I've attached for your research. I hope you will find some values in it and start deeper research.


My personal favorites are Valero, Sands China, Marathon Petroleum, Potash, Garmin and SJM. Which stocks do you prefer from the screen?


From inception during 2002 to date, the stocks qualifying for the screen have returned 15.6% per annum.


Here are the results...




Deep Value Stock Screener Results As Of Novebmer 2015 (click to enlarge)

Here are the top ten emerging market stocks that qualified for the Graham & Rea screen at the beginning of November.


Deep Value Stock Screener Results Emerging Markets
As Of Novebmer 2015 (click to enlarge)

16 comments:

  1. Benjamin Graham was a scholar and professional investor who mentored renowned value investors such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

    Warren Buffett wrote the preface to Graham's book - The Intelligent Investor - and calls it "by far the best book about investing ever written."

    Graham's first recommended strategy - for novice investors - was to invest in the stocks comprising an Index.
    For more serious investors, Graham recommended three categories of stocks - Defensive, Enterprising and NCAV - with 17 rules for Quality and Quantity.
    For professional investors, Graham described various special situations or "workouts".

    The first requires almost no analysis, and is easily accomplished today with a good S&P500 Index fund.
    Defensive, Enterprising and NCAV stocks can be reliably detected by modern data-mining software, and offer a great avenue for profitable investment.
    Most of Buffett's investments are what Graham defined as Special Situations.

    For example, given below is an analysis using Benjamin Graham's full stock selection framework (adjusted for inflation).

    Defensive Graham investment requires that all ratings (except Equity ÷ Debt) be 100% or more.
    Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, N/A, 50%, 5%, N/A and 137%.

    Toyota Motor Corp (TM) - Defensive Graham Ratings
    Sales | Size (100% ⇒ $500 Million): 44,606.00%
    Current Assets ÷ [2 x Current Liabilities]: 53.53%
    Net Current Assets ÷ Long Term Debt: 12.13%
    Equity ÷ Debt (for Utilities and Financials): 53.65%
    Earnings Stability (100% ⇒ 10 Years): 50.00%
    Dividend Record (100% ⇒ 20 Years): 0.00%
    Earnings Growth (100% ⇒ 33% Growth): 0.00%
    Graham Number ÷ Previous Close: 93.55%

    Note: Stocks failing Graham's rules are not necessarily bad investments. They may fall under Graham's "special situations" category. Graham's rules are also extremely selective.

    Warren Buffett once gave a talk at Columbia Business School describing how Graham's record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham's principles are everlasting. The talk is known today as "The Superinvestors of Graham-and-Doddsville".

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