Ben Graham Value Score

Ben Graham Value Score

Benjamin Graham, the father of value investing, collaborated closely with James Rea, an aeronautical engineer passionate about quantitative finance. Their partnership aimed to refine Graham's stock selection approach. They identified 10 pivotal criteria, grouped into "reward" and "risk" categories. Very few stocks, however, met all ten guidelines. Their research underscored the importance of earnings yield, dividend yield, and keeping total debt less than book value. Historically, these principles have outperformed market returns, but their consistent success isn't always guaranteed, as seen in varied outcomes across different applications.