Pfizer, Tiffany Are Stocks Ben Graham Would Buy,
Grants Says
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By Eric Martin
Dec. 10 (Bloomberg) -- Pfizer Inc. and Tiffany &
Co. are among eight stocks that Benjamin Graham,
the father of value investing and Warren Buffetts
mentor, would buy, Grants Interest Rate Observer said.
Cooper Industries Inc., Nucor Corp., Cintas Corp.,
Archer Daniels Midland Co., Molex Inc. and
RadioShack Corp. also meet the seven criteria
Graham presented in 1973 for stocks that a
defensive investors might buy with confidence,
according to the latest issue of Grants, which was
released today.
That there are as many as eight is a notable
fact, the newsletter said. In March 2003, near
what would prove to be the bottom of the
post-Nasdaq washout, Grants could identify only
two that met the grade.
Graham favored companies that have adequate size;
current assets that exceed liabilities by two
times; 10 straight years of profit; 20 years of
uninterrupted dividends; 10 years of earnings
growth exceeding 33 percent; a price-to-earnings
ratio of less than 15; and a price-to-book ratio
thats less than 1.5, according to Grants, an
investment newsletter founded by James Grant in 1983.
Security Analysis, published in 1934, provided a
road map for value investors including Buffett, the
chairman of Berkshire Hathaway Inc.