Value Investing

The Intelligent Investor – 7 Things to Watch for the Defensive Investor

The Intelligent Investor by Benjamin Graham is surely the best book for stock market beginners as it gives you both the tools and the mindset to start investing safely.

We continue with our summary of it and discuss Chapter 14 – Stock Selection For the Defensive Investor where Graham gives 7 indicators to statistically approach investing that anyone can follow.

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

The criteria are the following:

  1. Adequate size
  2. Strong finances
  3. 20 years of dividends
  4. No earnings losses in the past 10 years
  5. 33% 10 year earnings growth
  6. Price to book not above 1.5
  7. Price to earnings not above 15

Enjoy the video where I discuss the above in more detail and explain how and why Graham approaches the above.