Net-Net Stock Sectors

Are there any limitations to Stock Sector for Net-Net selection?

I've done up a sample portfolio and it seems heavily weighted to the Financial Sector, along with a number of stocks that have N/A as their sector on Serenity.

I just want to make sure I'm not missing something, and that adding these to a portfolio would be considered best practice.

Thanks in advance for the help.

Submitted by AesDana. Created on Monday 24th January 2022. Updated on Monday 24th January 2022.

Submitted by GrahamValue on Monday 24th January 2022

Dear AesDana,

Thank you for your forum post!

Graham does not seem to have recommended anything apart from the Diversification and EPS (TTM) requirements for NCAV grade stocks.

But it's common for certain sectors to exhibit certain financial patterns. For example, Graham himself noted that Utilities were more likely to clear his Defensive criteria. So perhaps it's not surprising that the NCAV portfolio is more weighted towards Financials.

Please note that all analyses by GrahamValue are automated, and done using data provided by a third party. Please remember to do your own independent due diligence.

Thank you again for your forum post!