Benjamin Graham: Rules For Appraisal Of Common Stock For Investment Purposes

Rupert Hargreaves

Published onNovember 3, 2015

Updated on May 13, 2021

Benjamin Graham: RULES FOR APPRAISAL OF COMMON STOCK FOR INVESTMENT PURPOSES

Below is a carbon copy of Benjamin Graham’s lecture notes on his 11 rules for appraising stocks. You can find a copy of the original set of notes here, although they are essentially illegible. The original document misses off the final rule, number eleven, which is mentioned elsewhere.

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OUTLIER OF NOVEMBER 6TH LECTURE Benjamin Graham RULES FOR APPRAISAL OF COMMON STOCK FOR INVESTMENT PURPOSES 1.Appraised Value is determined by (a) estimating the Earnings Power (b) applying the appropriate multiplier (c) adjusting, if necessary, for asset value. 2. Earning Power should ordinarily represent an estimate of average earnings for the next five...

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Rupert Hargreaves

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha

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