Picking Stocks for the Ultimate Retirement Portfolio
Benjamin Graham Margin of Safety PDF Print E-mail
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Written by Dr. Econ   
Wednesday, 13 July 2011 00:00

Benjamin Graham, the man who inspired Warren Buffet, is the father of value investment. Graham was an academician as well as an investor. He wrote several books about stock markets. In his books, he also used back-testing models to prove his points. He is known to be a defensive investor, but he also has suggestions for the enterprising investors. One thing for sure, he is looking for margin of safety in the stocks. In his books Graham suggests looking for undervalued stocks with the highest margin of safety. Warren Buffet, who became a billionaire following Graham's advice,explains margin of safety as buying a stock for a minimum of 30% discount to its intrinsic value. Here is how Graham values a stock:

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Download this file (FairValueFinalWeb.xls)Margin of Safety EstimatorDownload Excel FileDr. Econ31 Kb10/09/11 12:13
Last Updated on Sunday, 28 August 2011 11:08

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