Just came across this Bloomberg report from December 10 on what Jim Grant thinks Ben Graham would buy today. There are eight stocks including Pfizer, Tiffany, Cooper Industries, Nucor Corp., Cintas, Archer Daniels Midland, Molex and RadioShack.
“That there are as many as eight is a notable fact,” the
newsletter said. “In March 2003, near what would prove to be the
bottom of the post-Nasdaq washout, Grant’s could identify only
two that met the grade.”
According to the linked report, Graham favored companies that have “adequate size;” current assets that exceed liabilities by two times; 10 straight years of profit; 20 years of uninterrupted dividends; 10 years of earnings growth exceeding 33 percent; a price-to-earnings ratio of less than 15; and a price-to-book ratio that’s less than 1.5.
John, if you like Grant so much you should subscribe to Grant's. I know that the $850 annual price tag is high, but believe me, it's worth it. One good investment idea would pay for the subscription, and the pleasure of reading such well-written commentary doesn't really have a price tag. Take the plunge.
Posted by: David | December 17, 2008 at 09:12 AM
David: I have subscribed off and on over the years. Not subscribing right now (can't get everything, you know), but you're right it's a great publication.
Posted by: John | December 17, 2008 at 12:04 PM