Graham vs. Greenblatt (Session 4) Buy some cheap earnings


falling+money Graham vs. Greenblatt (Session 4) Buy some cheap earnings
In our last post we looked at Greenblatt’s use of Return on Capital as a means of identifying quality companies that know how to turn a small investment into a substantial return. In this posting we will look at his next criteria earnings yield.

Buy on the Cheap (Price/Earnings) (Session2)


accounting dollar sign Buy on the Cheap (Price/Earnings) (Session2)To follow up our Graham intro we will investigate Graham’s first insurance technique of buying on the cheap. Graham used a number of ratios to determine if a company is cheap. The first ratio we need to look at is the Price/Earnings ratio.