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Thursday, October 23, 2008

Graham's Quick Checklist for Defensive Investor's

1. Has market share of at least 25% in the history
2. current asset ratio > 2
3. Long term debt < net current assets (or working capital)
4. Debt-to-equity < 0.5
5. 10 years of profits
6. EPS grown by one third in 10 years
7. 20 years of dividend payments
8. Average PER in last 3 years < 15
9. Current price < 1.5 times book value

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