Benjamin Graham
The Father of Value Investing
1934 - 1976
The market is a voting machine in the short run but a weighing machine in the long run. This screener applies Graham's two core stock-selection frameworks - the Defensive Investor test (7 criteria) and the Enterprising Investor test (6 criteria) - plus a net-net bargain screen.
Investment Approach
- 1Adequate size - minimum revenue of $500 million to ensure stability
- 2Current ratio at least 2:1 - strong short-term financial health
- 3Positive earnings in each of the past 10 years - no losses
- 420 years of uninterrupted dividends - shareholder commitment
- 5P/E ratio no higher than 15 - avoids overpaying for earnings
- 6P/B ratio no higher than 1.5 or combined P/E x P/B below 22.5
- 7Net-net bargain: market cap below net current asset value (NCAV)
Defensive & Enterprising Tests
Criteria derived from Benjamin Graham's published writings and investment principles.
Top 10 UK Equities - Benjamin Graham Strategy
Ranked by Graham Defensive (7 tests) and Enterprising (6 tests) criteria, with margin of safety.
| # | Ticker | Company | Sector | Mkt Cap | Def | Ent | MoS | Score | Verdict |
|---|---|---|---|---|---|---|---|---|---|
| 1 | TW | Taylor Wimpey PLC | Homebuilding | $3.5bn | 6/7 | 5/6 | 42.2% | 100.0 | BUY – Net-net (≤ ⅔ NCAV) |
| 2 | BWY | Bellway PLC | Homebuilding | $3.0bn | 6/7 | 5/6 | 36.2% | 99.6 | BUY – Net-net (≤ ⅔ NCAV) |
| 3 | FOUR | 4imprint Group PLC | Advertising | $1.7bn | 6/7 | 5/6 | -160.6% | 99.3 | Watchlist |
| 4 | JD | JD Sports Fashion PLC | Other Specialty Retail | $5.5bn | 6/7 | 4/6 | 30.5% | 98.9 | Watchlist |
| 5 | GFTU_u | Grafton Group PLC | Trading Companies & Distributors | $2.4bn | 6/7 | 4/6 | 19.2% | 98.6 | Watchlist |
| 6 | ABF | Associated British Foods PLC | Packaged Foods & Meats | $17.7bn | 6/7 | 4/6 | 17.7% | 98.2 | Watchlist |
| 7 | INCH | Inchcape PLC | Distributors | $3.0bn | 6/7 | 3/6 | 17.6% | 97.8 | Watchlist |
| 8 | PFD | Premier Foods PLC | Packaged Foods & Meats | $2.3bn | 6/7 | 3/6 | 12.1% | 97.5 | Watchlist |
| 9 | BTRW | Barratt Redrow PLC | Homebuilding | $5.6bn | 5/7 | 5/6 | 24.1% | 97.1 | Watchlist |
| 10 | PSN | Persimmon PLC | Homebuilding | $5.3bn | 5/7 | 5/6 | 13.1% | 96.8 | Watchlist |
Taylor Wimpey PLC
Bellway PLC
4imprint Group PLC
JD Sports Fashion PLC
Grafton Group PLC
Associated British Foods PLC
Inchcape PLC
Premier Foods PLC
Barratt Redrow PLC
Persimmon PLC
Disclaimer
This page applies Benjamin Graham's documented investment philosophy to UK-listed equities. Rankings and scores are illustrative and do not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.