SEND THIS ARTICLE TO A FRIEND

In a previous article, we discussed Ben Graham's Net Current Asset Value
(NCAV) strategy and how it works. Here we will revisit Graham's rules, which
were fairly severe in their original form in that they required the price of the
stocks under consideration to be trading at less than two-thirds of their NCAV
or Graham's Number. These he considered to be "Bargain Issues", and to
quote him: "Our purchases were made typically at two-thirds or less of such
stripped-down asset value. In most years we carried a wide diversification here--
at least 100 different issues."