Benjamin Graham
Benjamin Graham📌 Stock Picking

Benjamin Graham's Stock Picking Rules

Benjamin Graham (May 9, 1894 – September 21, 1976) was a British-born American economist, professor, and investor, widely known as the "father of value investing." His work laid the foundation for modern security analysis and investment philosophy. Graham taught at Columbia Business School for nearly three decades, where his students included Warren Buffett, who later called him the second most...

3 principles·Stock Picking

3 Key Stock Picking Principles

#1

Quantitative Screening

"We recommend selecting stocks using quantitative criteria: earnings-to-price yield, dividend record, balance sheet strength, and moderate price-to-earnings ratios."

Use quantitative criteria to screen for value stocks.

🌿 Intermediate★★★★★
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#2

Bargain Hunting Method

"The true investor does his best work in a declining market, because he seeks values. Real opportunities in stocks come when they are temporarily unloved by the market."

The best bargains appear during market downturns.

🌿 Intermediate★★★★☆
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#3

Net-Net Selection Criterion

"We suggested as a minimum requirement that the total equity be at least half the total capitalization, and that total current assets should be at least equal to total current liabilities."

Apply strict balance sheet tests before buying.

🌳 Advanced★★★★☆
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Frequently Asked Questions

What are Benjamin Graham's key stock picking principles?

Benjamin Graham has 3 key principles on stock picking. The most important one is "Quantitative Screening" — We recommend selecting stocks using quantitative criteria: earnings-to-price yield, dividend record, balance sheet strength, and moderate price-to-ear...

How does Benjamin Graham apply stock picking in practice?

Benjamin Graham applies stock picking through several key principles including "Quantitative Screening" and "Bargain Hunting Method". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes Benjamin Graham's approach to stock picking unique?

Benjamin Graham's approach to stock picking is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Benjamin Graham provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.

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