We have suggested as a fundamental guiding rule that the investor should never have less than 25% or more than 75% of his funds in common stocks, with consequent inverse range of between 75% and 25% in bonds This sensible advice from Benjamin Graham is aimed at what he called 'defensive investors': The defensive (or passive) investor will place his chief emphasis on the … [Read more...] about How To Allocate Capital Between Stocks and Bonds
I'm late to the party but Glaxosmithkline (LSE: GSK) is the latest stock to find a home in the Shares and Stock Markets Portfolio mainly to add some ballast to an otherwise speculative stock selection. I opened a position on Monday but hadn't had time to update the website due to my focus on the private business which is the reason why the Shares and Stock Markets portfolio … [Read more...] about Long Glaxosmithkline Plc At £14.87: A Relatively Unpopular Large Company
A reader has recently asked two very interesting questions after reading the post on Volkswagen's potentially criminal behavior and subsequent 40% share price decline: Do you think it has currently dropped enough, or is this just the start, to create an excellent Margin of Safety? Are there any other largely unpopular companies following along the Graham model that you … [Read more...] about Are There Any More Relatively Unpopular Large Companies Like Volkswagen?
The lovely kind of mayhem that is currently engulfing VW together with it's 40% share price decline over the last two days makes it a relatively unpopular large company. It's funny. The other day I had an interesting tweet in response to Monday's article titled How To Invest In Stocks Like Benjamin Graham. Basically - sadly as is normal with the Twittersphere - the … [Read more...] about 40% Drop In Share Price Makes Volkswagen A Relatively Unpopular Large Company
The price to book ratio has always been a default metric with which many value investors start to get a sense of the intrinsic valuation of a business before engaging in more in-depth research. Benjamin Graham and his seminal work The Intelligent Investor has been the go-to book for individuals who are serious about learning the art of value investing and will remain so for … [Read more...] about How To Invest In Stocks Like Benjamin Graham