Benjamin Graham's Stock-Picking Strategies
Plenty of Web sites have stock screens based on methods established by the father of securities analysis.
Is there a Web site for stock screening that uses Benjamin Graham's value-investing rules?
Benjamin Graham, the father of securities analysis, outlined his stock-picking strategies in The Intelligent Investor, published in 1949, and those strategies have been widely disseminated -- including on the Internet -- ever since.
Graham advocated buying a stock at a price well below the company's intrinsic value. His goal was to get a dollar of assets for less than 50 cents. That discount gives investors a margin of safety, which insulates them from the whims of the market.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Plenty of Web sites have screens based on Graham's methods. For example, he prized companies with net cash holdings (cash minus outstanding debt) equal to at least 50% of their stock-market value.Nasdaq's Web site offers a free Graham screener that selects Nasdaq-traded stocks that pass the test.
Morningstar.com offers a customized screen that applies a broader array of Graham's criteria. The screen is part of Morningstar's premium membership, which costs $15.95 per month, or $145 for one year. Or, for less than $20, buy The Intelligent Investor and create your own Graham-inspired screens at Kiplinger.com or Yahoo Finance.
A word of caution: Graham's criteria can lead you to stocks that are value traps, meaning the shares are cheap for good reason and unlikely to appreciate. Screens are a good place to start, but don't buy without doing your research.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Take Charge of Retirement Spending With This Simple Strategy
To make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
By Mark Gelbman, CFP® Published
-
Here's How To Get Organized And Work For Yourself
Whether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
By Laura Petrecca Published
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
By Dan Burrows Published
-
Fed Cuts Rates Again: What the Experts Are Saying
Federal Reserve The central bank continued to ease, but a new administration in Washington clouds the outlook for future policy moves.
By Dan Burrows Published
-
Fed Goes Big With First Rate Cut: What the Experts Are Saying
Federal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
By Dan Burrows Published
-
Stock Market Today: Stocks Retreat Ahead of Nvidia Earnings
Markets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
By Dan Burrows Published
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in Focus
Nvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
By Karee Venema Published
-
Stock Market Today: Dow Hits New Record Closing High
The Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
By Karee Venema Published
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole Speech
Fed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
By Karee Venema Published
-
Stock Market Today: Stocks Drop Ahead of Powell's Jackson Hole Speech
Sentiment turned cautious ahead of Fed Chair Powell's highly anticipated speech Friday at the Jackson Hole Economic Symposium.
By Karee Venema Published