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|Subject: Re: Selecting stocks the Ben Graham way||Date: 12/13/2004 1:57 PM|
|Author: StarryNightShade||Number: 34892 of 46821|
Glad you enjoyed the post.
I haven't backtested the criteria. Ben Graham formed his views on the basis of substantial experience; and there have been numerous studies that have shown that stocks selected using value criteria like BG's outperform the market.
However, the view over the last few years is that Ben Graham's criteria are outdated. That was the question in my mind...."are Ben Graham's criteria still valid?" So backtesting would actually muddy the waters.
You should note that BG suggested his criteria, not as a way to beat the market, but as a way to sleep comfortably at night without worrying about investments.
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