Defensive deep-value investing

Benjamin Graham's Investing Strategy

Benjamin Graham - Buffett's mentor and the father of value investing - codified the 'Defensive Investor' framework in The Intelligent Investor. The bar is low, but each criterion is non-negotiable.

The framework, in plain English

P/E ratio ≤ 15 (relative to current earnings).
P/B ratio ≤ 1.5 (book value protection).
Current ratio ≥ 2 (short-term obligations covered).
Debt / Equity ≤ 1 (conservative balance sheet).
Profitable in each of the last 5 years (no recent losses).
Some earnings growth - even modest revenue/EPS growth qualifies.

From The Intelligent Investor (Graham, 1949) and Security Analysis.

Top 10 stocks scoring high on Benjamin Graham

#1AMJB75/100 · B
Meets 2/7 Graham criteria — classic deep-value candidate.
#2CUBWU70/100 · B
Meets 1/7 Graham criteria — classic deep-value candidate.
#3CUBWW70/100 · B
Meets 1/7 Graham criteria — classic deep-value candidate.