I'm confused on rule #5. Could someone help clarify it for me?
5. A minimum increase of at least one-third in per-share earnings in the past 10 years.
Should this calculation be the average EPS for the last ten years compared to year #1? Or this year's EPS compared to 10 years ago? I can read this rule a couple different ways.
Submitted by Rooster67fl. Created on Saturday 29th December 2018. Updated on Wednesday 6th March 2019.
Using three-year averages at the beginning and end
Thank you for your forum post, Rooster67fl!
This Graham rule and the way it's applied on Serenity is addressed in detail at Graham Rating - Earnings Growth.