Value Stocks: Cabot Benjamin Graham Value Letter
Comprehensive value investing advice based on the methods
developed by the "Father of Value Investing"
Value investing is about finding stocks that the market has not correctly priced ... in other words,
a stock that is worth more than is reflected in the current price. Many people have made fortunes using a value-based approach to investing. Value investing has been proven to work well over time if you buy carefully, follow a proven system and hold for the long term.
Cabot Benjamin Graham Value Letter, launched in 2003, uses the teachings of
Benjamin Graham, the father of value investing, in a system that safely builds long-lasting wealth. Unlike Cabot's growth publications, the letter doesn't use market timing, instead relying on the 82-year-old Graham system, followed by investors such as billionaire Warren Buffett, to pick undervalued stocks and hold them until they reach a specified valuation.
The publication's editor,
J. Royden Ward, brings his 40 years of investment research, portfolio management, writing and publishing experience to his role as analyst and editor of Cabot Benjamin Graham Value Letter. Prior to joining Cabot, Roy directed all facets of the investment divisions for several financial planning/investment advisor organizations and successfully managed and monitored the performance of 300 individual accounts for investors using stocks, bonds and mutual funds.
Roy is a second-generation disciple of Benjamin Graham. He was a student of Dr. Wilson Payne at Babson College, and Dr. Payne was a student of Benjamin Graham himself. Dr. Payne taught his students, including Roy, about Graham's system
, and in 1969 Roy worked with Dr. Payne to develop a computerized model that applied the formulas developed by Graham using a unique ranking system.
Value investing, perhaps more than any other type of investing, is more concerned with the business and its fundamentals, such as earnings growth, dividends, cash flow and book value, than market factors or a stock's price.
If the fundamentals are sound, but the stock's price is below its intrinsic value, the value investor knows that the market has incorrectly valued the stock and it is a likely investment candidate. When the market corrects that mistake, the stock experiences an increase in price.
Value investors acknowledge that their target investment company is worth much more as an ongoing business (expected cash flows, etc.) than its assets (market value). In many cases, it is the intangibles—patents, trademarks, research and development, brand, and so on—that drive the expectations of future growth, not hard assets.
Coming up with the
intrinsic value of a stock is a complicated process and there are a number of ways to get to the number. This is where Roy and his computerized model come in. Roy crunches the numbers so you don't have to, and he includes his results in each issue of the Letter.
One of Benjamin Graham's best-known factors in purchasing a stock was the
Margin of Safety. This method of stock selection continues to be used by Warren Buffet and others.
Graham's Margin of Safety simply means buying companies that are cheap relative to their intrinsic value. Roy Ward does just this using Graham's criteria in the Cabot Benjamin Graham Value Letter. Roy determines optimum
Maximum Buy Prices and
Minimum Sell Prices for stocks in order to achieve results similar to Benjamin Graham.
Each monthly issue of Cabot Benjamin Graham Value Letter contains two models that subscribers use to build portfolios of value stocks. Each model uses certain technical and fundamental criteria to recommend the highest-potential stocks; subscribers also receive the Maximum Buy Prices and Minimum Sell Prices for every recommendation. In addition to the models, each issue contains market commentary, Special Features, the 250 highest ranked stocks (using dozens of fundamental data points) and follow-ups. A subscription also includes Mid-Month Updates, timely Email Alerts, access to a subscriber-only Web site and email access to editor Roy Ward. The Letters can be delivered by either postal mail or email.
Most subscribers to Benjamin Graham Value Letter are looking for ways to safely build wealth over the long term. They want to go on vacation without worrying about their stocks. And they see great returns when following Roy's detailed research and recommendations.
Since the 1930s, Benjamin Graham's timeless value investing approach achieved returns of 20% per year with low risk regardless of the market's ups and downs. Today, Roy applies his system to two models in the Value Letter. Since inception in 1996, Roy's
Wise Owl Model has achieved a compound annual return of 16%, and since inception in 2003, Roy's
Classic Benjamin Graham Value Model has achieved a compound annual return of 22.4%.
The main goal of the Cabot Benjamin Graham Value Letter is to provide you with exceptional stock recommendations using the techniques pioneered by Benjamin Graham. Our second goal, no less important, is to give you the confidence to buy those stocks and the patience to hold them to fruition. If we can achieve those goals, we're confident you'll achieve yours, and together we'll have a long and prosperous relationship.
Beat the Dow the Warren Buffett Way
The Cabot Benjamin Graham Value Letter
is unique: it's the only advisory in the country that applies the
fundamental principles of Benjamin Graham to stock picking. it produces
steady, above average returns-with reduced risk-in undervalued
companies that Wall Street misses time after time.
- Standard Pacific: up 169% in 23 months
- CVS: up 150% in 40 months
- Pulte Homes: up 103% in 13 months
- KB Home: up 90% in 13 months
- Honda Motor: up 75% in 27 months
- Express Scripts: up 204% in 33 months
- UnitedHealth Group: up 103% in 16 months
If you had invested just $5,000 in each of these low-risk stocks, you would have turned your money into $80,000. Annual $249 subscription to
Cabot Benjamin Graham Value Letter includes:
• Cabot Benjamin Graham Value Letter sent via email or postal mail and accessible to subscribers on the Cabot website
• Market commentary
• Two Model Portfolios: Classic Benjamin Graham Value Model and Wise Owl Model
• Special Features of other value stocks
• 250 highest ranked stocks
• Fundamental and technical analysis
• Specific maximum buy prices and minimum sell prices for each stock
• Performance follow-ups
• Mid-Month Updates
• Timely Email Alerts
• 24/7 VIP website access to current issue, past issues and educational features
• Email access to editor J. Royden Ward
Please visit this link for more on the Cabot Benjamin Graham Value Letter and a special introductory rate for new subscribers.
Want more information on the Cabot Benjamin Graham Value Letter?
Please read the following:
Comments from Cabot Benjamin Graham Value Letter SubscribersRead what our subscribers have to say about the Cabot Benjamin Graham Value Letter.
Guide to Investing with Cabot Benjamin Graham Value LetterStep-by-step guide to getting started and using the Cabot Benjamin Graham Value Letter
Guide to Value InvestingHow to apply Benjamin Graham's value investing theories for solid returns with low risk.
Is the Benjamin Graham Value Letter Right for You?
If you like the idea of buying low and calmly hanging on, Cabot Benjamin Graham Value Letter is
the advisory that's right for you.
How to Invest During a RecessionTimothy Lutts is watching charts and finding bargains.
Does the Cabot Benjamin Graham Value Letter Fit Your Style?The time-tested system works well for conservative investors
Benjamin Graham Value: A carved-in-stone system that works
This system will suit you if you're the type of investor who needs a more rigid investing system.