In a speech that he made in 1973, Graham outlined an adaptation of some of his earlier investment practices to modern markets. Such a strategy depends on being able to find extremely inexpensive issues; an approach that has become increasingly difficult since the end of WW2. Portfolio Management Rules: (1) build a portfolio of approximately 30 issues of stocks chosen at random from stocks that meet the standards below, (2) set a target profit for each issue of 50% above cost, to be attained within 2 years, (3) all issues that do not appreciate at least 50% in 2 years should be sold at their market price at the end of 2 years. Standards: (1) an attractive P/E ration (or Earnings-to-Price Ratio – the opposite of P/E) of twice the last 12 months yield on Moody’s AAA bonds, but never less than 10, (2) an attractive dividend yield (3%-6% in most markets), (3) a price below book value (if you can find them those stocks at about two-thirds of book is preferred), (4) a price well below the previous high (perhaps one-half the market high of the last 2 years, (5) an attractive price in relation to past earnings growth (a P/E lower than the 7 to 10 year average P/E).
Does Serenity have any plans to add this screener in the future.