Comments on: Jason Zweig Pens Intelligent Investor Column at WSJ http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/ Wisdom on such diverse topics as: spin-offs, merger arbitrage, post-bankruptcy equities, global macro commentary and short ideas. Thu, 10 Feb 2011 04:28:00 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Tariq http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/comment-page-1/#comment-598 Tariq Thu, 31 Jul 2008 01:47:30 +0000 http://streetcapitalist.com/?p=183#comment-598 David you're right. The page I was quoting from had a typo. It's Debt/Equity < 1. David you’re right. The page I was quoting from had a typo. It’s Debt/Equity < 1.

]]> By: Tariq http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/comment-page-1/#comment-5674 Tariq Thu, 31 Jul 2008 01:47:00 +0000 http://streetcapitalist.com/?p=183#comment-5674 David you're right. The page I was quoting from had a typo. It's Debt/Equity < 1. David you’re right. The page I was quoting from had a typo. It’s Debt/Equity < 1.

]]> By: David http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/comment-page-1/#comment-596 David Thu, 31 Jul 2008 00:59:45 +0000 http://streetcapitalist.com/?p=183#comment-596 Dear Tariq. Debt/Equity >1 strikes me as very odd as the thing to look for as a sign of a good stock. Perhaps D/E less than 1 is the right stuff? Dear Tariq. Debt/Equity >1 strikes me as very odd as the thing to look for as a sign of a good stock. Perhaps D/E less than 1 is the right stuff?

]]> By: David http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/comment-page-1/#comment-5673 David Thu, 31 Jul 2008 00:59:00 +0000 http://streetcapitalist.com/?p=183#comment-5673 Dear Tariq. Debt/Equity >1 strikes me as very odd as the thing to look for as a sign of a good stock. Perhaps D/E less than 1 is the right stuff? Dear Tariq. Debt/Equity >1 strikes me as very odd as the thing to look for as a sign of a good stock. Perhaps D/E less than 1 is the right stuff?

]]> By: Tariq http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/comment-page-1/#comment-539 Tariq Mon, 14 Jul 2008 13:55:20 +0000 http://streetcapitalist.com/?p=183#comment-539 Lowell, simultaneously at around 1976 Benjamin Graham was advocating the use of a stock screen: "In his next interview published in Medical Economics, September 20, 1976 titled “The Simplest Way to Select Bargain Stocks” Graham, then 82, proposed a simpler, more refined formula that consisted of: PE Ratio of 7x-10x or less (Based on 2x current AAA bond rates)*; Equity/Asset Ration of .5 or more (e.g. Debt/Equity >1)." I think that the line you're quoting is not so much a vote of confidence for EMH, but rather a suggestion that you do not have to partake in extensive security analysis to yield good returns - you can use less intensive methods like his screen. Lowell, simultaneously at around 1976 Benjamin Graham was advocating the use of a stock screen:

“In his next interview published in Medical Economics, September 20, 1976 titled “The Simplest Way to Select Bargain Stocks” Graham, then 82, proposed a simpler, more refined formula that consisted of:

PE Ratio of 7x-10x or less (Based on 2x current AAA bond rates)*;
Equity/Asset Ration of .5 or more (e.g. Debt/Equity >1).”

I think that the line you’re quoting is not so much a vote of confidence for EMH, but rather a suggestion that you do not have to partake in extensive security analysis to yield good returns – you can use less intensive methods like his screen.

]]> By: Tariq http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/comment-page-1/#comment-5672 Tariq Mon, 14 Jul 2008 13:55:00 +0000 http://streetcapitalist.com/?p=183#comment-5672 Lowell, simultaneously at around 1976 Benjamin Graham was advocating the use of a stock screen: "In his next interview published in Medical Economics, September 20, 1976 titled “The Simplest Way to Select Bargain Stocks” Graham, then 82, proposed a simpler, more refined formula that consisted of: PE Ratio of 7x-10x or less (Based on 2x current AAA bond rates)*; Equity/Asset Ration of .5 or more (e.g. Debt/Equity >1)." I think that the line you're quoting is not so much a vote of confidence for EMH, but rather a suggestion that you do not have to partake in extensive security analysis to yield good returns - you can use less intensive methods like his screen. Lowell, simultaneously at around 1976 Benjamin Graham was advocating the use of a stock screen:

“In his next interview published in Medical Economics, September 20, 1976 titled “The Simplest Way to Select Bargain Stocks” Graham, then 82, proposed a simpler, more refined formula that consisted of:

PE Ratio of 7x-10x or less (Based on 2x current AAA bond rates)*;
Equity/Asset Ration of .5 or more (e.g. Debt/Equity >1).”

I think that the line you’re quoting is not so much a vote of confidence for EMH, but rather a suggestion that you do not have to partake in extensive security analysis to yield good returns – you can use less intensive methods like his screen.

]]> By: Lowell Herr http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/comment-page-1/#comment-538 Lowell Herr Mon, 14 Jul 2008 12:56:32 +0000 http://streetcapitalist.com/?p=183#comment-538 Here is my favorite quote by Benjamin Graham which he gave to the Financial Analysts Journal in 1976 shortly before he died. “I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when Graham and Dodd was first published; but the situation has changed…[Today] I doubt whether such extensive efforts will generate sufficiently superior selections to justify their cost…I’m on the side of the ‘efficient market’ school of thought.” Here is my favorite quote by Benjamin Graham which he gave to the Financial Analysts Journal in 1976 shortly before he died.

“I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when Graham and Dodd was first published; but the situation has changed…[Today] I doubt whether such extensive efforts will generate sufficiently superior selections to justify their cost…I’m on the side of the ‘efficient market’ school of thought.”

]]> By: Lowell Herr http://streetcapitalist.com/2008/07/12/jason-zweig-pens-intelligent-investor-column-at-wsj/comment-page-1/#comment-5671 Lowell Herr Mon, 14 Jul 2008 12:56:00 +0000 http://streetcapitalist.com/?p=183#comment-5671 Here is my favorite quote by Benjamin Graham which he gave to the Financial Analysts Journal in 1976 shortly before he died. “I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when Graham and Dodd was first published; but the situation has changed…[Today] I doubt whether such extensive efforts will generate sufficiently superior selections to justify their cost…I’m on the side of the ‘efficient market’ school of thought.” Here is my favorite quote by Benjamin Graham which he gave to the Financial Analysts Journal in 1976 shortly before he died.

“I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when Graham and Dodd was first published; but the situation has changed…[Today] I doubt whether such extensive efforts will generate sufficiently superior selections to justify their cost…I’m on the side of the ‘efficient market’ school of thought.”

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