I would like to get an opinion on Waddell & Reed Financial Inc (WDR) stocks that is currently having a huge price cut (PE: 8/1, PB:1.8/1). At the same time, the company remains very healthy, EPS growth 3 yr avg: 17% (positive eps in the past 10 yrs), current ratio: 3.26, debt/equity: 0.23, and dividend yield: 10% (paying dividends in the past 19 years). I personally think this is more Defensive stock since it barely missed the category due to the dividend record.
Current Risks:
* New Federal Fiduciary Rule
* Lost of third party fund distributors
* New CEO trying to go more "digital"
What did Ben Graham think of investing in asset management industry? Ben Graham is all about diversification. Did he mention a maximum investment capital percentage that a value investor should invest in a stock?
Submitted by williamjohnt. Created on Wednesday 12th October 2016. Updated on Monday 8th April 2019.
WDR, Financials and Sizing
Thank you for your forum post, Will!
Waddell & Reed Financial Inc (WDR) is indeed very close to clearing both Defensive and Enterprising Graham criteria.
Benjamin Graham did indeed give very specific instructions for evaluating Public-Utilities and Financial Enterprises.
Graham did give very specific instructions on Position Sizing as well.
Hope this answers all your questions!
It's great to have you on Serenity.