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  • Writer's pictureIshfaaq Peerally

7 Rules of Value Investing of Benjamin Graham(Investing For Beginners)

Benjamin Graham was the mentor of Warren Buffett and the father of value investing. His book, The Intelligent Investor, is the most recommended book about investing for beginners.

While Benjamin Graham never set up the rules of value investing but these 7 rules are only here to summarize his work.

Rules: 1. Credit rating of B+ or better 2. Debt to equity ratio of less than 1.10 3. Current ratio of over 1.50 4. EPS (Earnings per share) have been increasing and positive for the last five years 5. P/E ratio less than 15 6. P/B ratio less than 1.5 Rules 5 and 6 can be merged into the Graham Number 7. Stock pays rising dividends


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