The Intelligent Investor - The Definitive Book On Value Investing

CHAPTER 14 Stock Selection for the Defensive Investor It is time to turn to some broader applications of the techniques of secur ...

purchase, to make sure that he obtains (1) a minimum of qualityin the past performance and current financial position of the com ...

Moderate Price/Earnings Ratio Current price should not be more than 15 times average earn- ings of the past three years. Modera ...

dollar of invested capital. There is no reason for the defensive investor to include such companies—though if the price is low e ...

Stock Selection for the Defensive Investor 351 TABLE 14-1 Basic Data on 30 Stocks in the Dow Jones Industrial Average at Septemb ...

Allied Chemical 18.3
18.0
3.7% (–15.0%) 2.1
74% 125% Aluminum Co. of Am. 10.7 8.8 4.0 149.0% 2.7 51 84 Amer. Brands 10.1 1 ...

Inter. Paper 22.5 14.0 4.6 26.1 2.2 62 139 Johns-Manville 19.3 16.8 3.0 43.8 2.6 — 158 Owens-Illinois 13.2 14.0 2.6 64.7 1.6 51 ...

The aggregate earnings have been quite stable in the past decade. None of the companies reported a deficit during the prosperou ...

TABLE 14-3 DJIA Issues Meeting Certain Investment Criteria at the End of 1970 American American Average, Can Tel. & Tel. Ana ...

Here the vast majority of issues appear to be cut out, by their per- formance record and their price ratios, in accordance with ...

TABLE 14-4 Data on the Fifteen Stocks in the Dow Jones Utility Av erage at September 30, 1971 Earns.Per Share Price Price/ 1970 ...

TABLE 14-5 Data on a Second List of Public-Utility Stocks at September 30, 1971 Earns.Per Share Price Price/ 1970 Sept. 30, Book ...

For the defensive investor the central appeal of the public-utility stocks at this time should be their availability at a modera ...

These reversals will have more meaning for the active than for the passive investor. But they suggest that even defensive portfo ...

The year-end 1970 figures ranged between 44.3 for the 9 New York banks and 218 for the 11 life-insurance stocks. During the sub- ...

course been difficult as well, but that has not been confined to rail- roads.) Automobiles, buses, and airlines have drawn off m ...

Selectivity for the Defensive Investor Every investor would like his list to be better or more promising than the average. Hence ...

Our statement that the current price reflects both known facts and future expectations was intended to emphasize the double basi ...

By contrast, those who emphasize protection are always espe- cially concerned with the price of the issue at the time of study. ...

such preferences should do no harm; beyond that, it may add something worthwhile to the results. With the increasing impact of t ...