The strategy has a selection method to find stable companies that fit well with the defensive Investor.
The strategy comes directly from the famous book The Intelligent Investor-Benjamin Graham. Chapter 14 - "Stock Selection for The defensive Investor".
The method of selection is that the companies should meet as many as possible of the seven Criteria. In screener you will see a score from 0 to 7 depending on how many of the criteria companies Meet.
- Financial strength
- Earning stability-requirements for profit
- Dividend History-requirements for the dividend
- Profit GROWTH – Total profit growth
- Moderate P/E ratio
- Moderate Equity Price