- Is PE ratio less than half the reciprocal of the 10yr government bond yield?
- Is the PE ratio less than 40% of the 5yr average?
- Is the dividend yield at least 2/3rd of the 10yr government bond yield?
- ...
Benjamin Graham is the father of investing and his way of value investing was to search for net-net stocks where he will construct a basket of stocks as his portfolio. His method of value investing is still being widely practiced by value investors such as Seth Klarman, Third Avenue Management etc. Following my blog post a month ago on Singapore stocks via a report by CLSA, I would like to feature a similar report by CLSA on Malaysia stocks
Ben Graham stated 10 rules for stock selection, the first five measuring “reward” (price relative to earnings) and the second five measuring “risk” financial soundness and earnings stability). Ben Graham's 10 criteria are:
