Defensive stocks,
hello, I want your opinion on my search method.
Size in Sales (100% ⇒ 500 Million) 0
Earnings Growth (100% ⇒ 33% Growth)0
XNYS OR XNAS
I exclude financial institutions, public utilities, REITs
I have 61 companies that apply the same defense standards, with the exception of profit growth and volume in sales
I found 20 companies that have a competitive advantage, and the rest of the companies unfortunately, but I will be very nice and follow them every year. I will see who can come to the list of A or B.
The comparison method was as follows. Profit growth + sales volume / 2
In the list of A
1-AIN
2-KBH
3-NKE
4-UFPI
5-LEN
6-EXPD
7-TXN
8-GWW
9-RS
10-NUE
In the list of B
1-CMC
2-WOR
3-GGG
4-WST
5-WSO
6-FAST
7-GNTX
8-AIT
9-SNA
10-TXT
Submitted by Omar_H. Created on Monday 4th September 2023. Updated on Monday 4th September 2023.
Customized Screening Strategies
Dear Omar_H,
Thank you for your forum post!
GrahamValue has previous published a post on possible Customized Stock Screening Strategies. As you can see there, GrahamValue gives some examples of adding additional rules to Graham's own requirements.
GrahamValue does not recommend removing any of Graham's rules, since they are a system of checks and balances developed over nearly fifty years of research and backtesting.
Thank you again for your forum post!
I have seen the custom stock
I have seen the custom stock checking strategies article.
You are always writing, please do your own research before making an investment decision.
Graham also recommended a portfolio size of 30 for NCAV grades; No more than 3.3% of one's wallet
The question here, after I used the strategy, I had a lot of companies. How do I do my own research and what are the things that I should look at to liquidate companies, for example, from 100 companies to 30
Can you write a new blog for training on private research?
1-Defensive
2-Enterprising
3-NCAV (Net-Net)
I will be grateful to you, that's what's left now for me to train every day
Sorry for the long post
Independent Verification Required
Dear Omar_H,
Thank you for your comment! Long posts are much appreciated as well.
The Disclaimer is only meant to convey that all data and analyses on GrahamValue should be verified independently.
GrahamValue does not recommend diluting Graham's requirements, as they are designed to provide the minimum Margin of Safety for one's investments.
Only adding additional parameters to them would be acceptable.
For an explanation of such additional personal preferences, please see what Graham says about winnowing Enterprising grade stocks.
Thank you again for your comment!
1- I understood the issue of
1- I understood the issue of verifying the financial evidence, and it is really very important
2- Regarding not removing Benjamin's standards, I did not remove anything from them in the shares
Enterprising
and
NCAV (Net-Net)
Only in the defensive stocks, I only removed the competitive advantage (profit growth + sales volume), only the goal was to find the highest company that achieves profit growth + volume in sales to extract the best 20 companies, and I found companies that achieve profit and volume growth. In sales, it is very high, above 200% for each of them
3-
If our winnowing approach had been applied to all 4,500 companies in the Stock Guide, and if the ratio for the first tenth had held good throughout, we would end up with about 150 companies meeting all six of our criteria of selection. The enterprising investor would then be able to follow his judgment—or his partialities and prejudices—in making a third selection of, say, one out of five in this ample list."
Chapter 15: Stock Selection for the Enterprising Investor, The Intelligent Investor.
(would then be able to follow his judgment—or his partialities and prejudices—in making a third selection of, say, one out of five in this ample list.")
Here's the question: How can I really achieve this thing?
4- Also, are there additional criteria that are higher than that you put in the strategy for Enterprising and NCAV (Net-Net) shares?
More Stringent Criteria?
Dear Omar_H,
Thank you for your comment!
The Quick Reference, and the Video Tutorials in it, already include several required adjustments for Currency, Inflation and Interest Rates.
GrahamValue does not recommend any additional requirements, especially outside of Graham's framework, as that would be outside of GrahamValue's scope and also deemed superfluous.
Perhaps Graham meant here that the investor could apply some more stringent selectivity criteria for Sectors or Size or Growth, as you have also mentioned. But that would only be after after Graham's listed criteria have all been met.
Thank you again for your comment!
Is there any more stringent
Is there any more stringent criteria?
Other than what was mentioned
Sectors + Size in Sales + Profit Growth
All Filters
Dear Omar_H,
Thank you for your comment!
Potentially, any of the filters on the Graham screeners could be made more stringent.
GrahamValue cannot give any specific additional requirements, apart from those already discussed, as that would be outside of GrahamValue's scope.
Thank you again for your comment!
Can I suggest developing the site?
1- How many times have revenues increased over the past ten years, not as a percentage, but rather a number of times?
2- Whether the company has a net cash position
Net cash (cash-Debt > 0)
3- Profits, what was the company paying profits or repurchasing its shares?
4- Profitability
Average Total Margins for 5 Years
5- Average operating margins for 5 years
6- Industry
There is a new list that you call a competitive advantage or anything you see fit.
Thank you!
Dear Omar_H,
Thank you for your comment and for the thoughtful criteria!
GrahamValue is designed on the belief that since Graham spent nearly his whole life developing his framework for maximum efficiency and that's what it comes so highly recommended; any additions to the framework would actually reduce its effectiveness rather than increase it.
However, many users have made such suggestions in the past, and many of them are actually very good. The last link also discusses how you can integrate your own parameters into the Graham analysis.
Thank you again for your comment!
I have a question about the
I have a question about the strategy
In terms of profit stability, it was really a very important option, and it should not be less than 50% in any way. But with regard to putting 50% in volume in sales, it was intended by the force of law to exclude startups.
As for the force of law, should I reduce the amount of 250 million?
What is the minimum sales volume?
Investment Lessons from Peter Thiel 1. Strong Law Power