My Style of Investing

My stock investing style is a mixture of the long-term investment style of Warren Buffett and Benjamin Graham with a hint of the "ring the register" investment style of Jim Cramer.

Monday, July 19, 2010

My Investing Rules #1

1.  Based on Benjamin Graham you should try to invest in stocks that have a P/E of 15 or lower and a P/B of 1.5 or lower.  When you multiply the P/E by the P/B the number must be 22.5 or less.  *This is a very conservative rule that I will break many times, but I will always explain why.

Current Stocks that meet the above criteria based on data from http://www.morningstar.com/:

354 stocks passed the test of a P/E equal to or lower than 15 and a P/B equal to or lower than 1.5.

Of the 354 stocks these are my favorite long-term investments:

Banco Santander (STD)  http://www.santander.com/
- Current Price:  $12.53
- Current Projected Dividend Yield:  4.15%
- An international play that is considered a value stock. All I have been hearing this summer is how the most growth will occur outside of the United States and in the BRIC countries (Brazil, Russia, India, and China) and other emerging markets. 

Navios Maritime Holdings Inc. (NM)  http://www.navios.com/
- Current Price:  $4.94 
- Current Projected Dividend Yield:  4.86%
- This is a very speculative play that only the risk tolerant should make.  So, this is for the younger crowd, or the risk tolerant.  Instead of placing a couple bets on Sunday you should look at NM.
- An international play with a good dividend.  Based in Greece with a port in Uruguay, NM is in the dry-bulk vessel business.  Which means they are involved in international shipping.

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