September 1, 2006
Benjamin Graham is hailed as the Dean of Wall Street. He is credited with systematising Security Analysis. It so happened that his book on Security Analysis was the first text book that I studied, when I began studying books on this subject. In his other book titled 'Intelligent Investor', he gave two methods one for conservative investors and the other for aggressive investors.
As I began teaching his ideas to employees of broking companies and students, the question of actual application and its utility came up. I developed a method of application in 2003 and applied it to A group shares at that time and came with a list of companies recommended by the method.
I explained the method in my article published in Business Standard in 2003. Readers can access this paper from my website http://www.geocities.com/cfamumbai/graham-piotroski-bus-std.doc.
I compared the performance of the stocks recommended by the method over the period Jan 2003 to August 2006 and found that it outperformed the sensex. I am in the processing of preparing an article on this performance and publish it.