Stocks that Benjamin Graham would love
Benjamin Graham (pictured), the patron saint of value investing, died 34 years ago. His classic books — “Security Analysis” (1934) and “The Intelligent Investor” (1949) — are still read by scores of value managers who keep his name and stock-picking methods alive.
From time to time, Thunderstorm Capital chairman John Dorfman tries to guess what stocks Graham would buy today if he were alive. Mr. Dorfman's Graham-inspired picks sell for less than book value (corporate net worth per share) and less than 12 times earnings. They also have debt less than 50 percent of stockholders' equity. None sell for more than 1.5 times tangible book value, which excludes goodwill.
Here are Mr. Dorfman's picks, along with his comments.
[Disclosure note: The opinions expressed are those of Mr. Dorfman, who is also a columnist for Bloomberg News. He has no long or short positions in the stocks discussed in this slide show, either for himself or for clients.]