Warren Buffett’s guru Benjamin Graham, best known for his book ‘The Intelligent Investor’, believed in focusing on real-life performance of the companies he owned and the dividends received, rather than on changing market sentiments. Based on the idea of Graham, a custom screen made by MarketSmith emphasizes securities that are cheap on a PE and price-to-book basis but still show signs of financial stability. It may be most effective in the later stages of bear markets when good companies’ stock prices have been driven down to values under their intrinsic worth. Here are 4 stocks that match Graham’s idea of stock picking, as listed on MarketSmith:
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