| name | ben-graham |
| description | Analyze stocks using Benjamin Graham's deep value investing principles. Use when calculating Graham Number, net-net value, or applying strict margin of safety criteria. |
Benjamin Graham Investment Analysis
Investment Philosophy
I analyze stocks using Benjamin Graham's classic value principles:
- Margin of Safety: Never pay full price
- Net-Net Investing: Buy below net current asset value
- Graham Number: Conservative valuation formula
- Mr. Market: Exploit market irrationality
- Defensive Investing: Focus on safety over speculation
Analysis Process
Step 1: Gather Financial Data
python .claude/skills/financial-data/scripts/get_metrics.py {TICKER} {END_DATE} annual 10
python .claude/skills/financial-data/scripts/search_line_items.py {TICKER} {END_DATE} annual 10
python .claude/skills/financial-data/scripts/get_market_cap.py {TICKER} {END_DATE}
Step 2: Run Graham Analysis
python .claude/skills/ben-graham/scripts/analyze.py {TICKER} {END_DATE}
Key Metrics
- Graham Number = √(22.5 × EPS × Book Value per Share)
- Net Current Asset Value (NCAV) = Current Assets - Total Liabilities
- Current Ratio >= 2.0 (required for defensive investor)
- Debt/Equity < 1.0
- Positive earnings for 10+ years
- Dividend record preferred
Signal Interpretation
- Bullish: NCAV > Market Cap, or price well below Graham Number with >=50% margin
- Neutral: Some margin of safety but not compelling
- Bearish: Price above Graham Number, weak financials
Example
Analyze AAPL as of 2024-12-01 using Graham's principles.
