Over the past five years I've used Benjamin Graham's time-tested strategy for defensive investors to uncover undervalued U.S. stocks. So far, the results have been breathtaking.
The performance of each year's Graham stocks, the performance of the S&P500 (as tracked by the SPY exchange-traded fund) and the difference between the two is shown in Table 1. You can see that the Graham stocks have solidly beaten the S&P500 each year*. In fact, an investor who bought each year's Graham stocks, sold, and then bought the next crop of stocks would have gained 369% (or 38% annually**) whereas a buy and hold investment in SPY units would have actually lost 5%.
http://www.ndir.com/SI/articles/1105.shtml
All the best,
Dah Hui Lau (David)
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