Grow Your Money: The Rhodes Society

Value Investing – Value Investing Is Dead.

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Synopsis

I was shocked! A recent article by Seeking Alpha proclaims the death of value investing.  Hi. I am Dr. Scott Brown.  I am the Rhodes Society co-founder along with wealth attorney Daniel Hall, JD. Check out our cutting-edge investment club over at Rhodes Society dot org. The bible of value investing is Security Analysis by Columbia finance professor Benjamin Graham.  He printed the first edition in 1934 with less well known fellow faculty member David Dodd. They pencil out a three-point model to explain the valuation of common stock.  The first is the dividend rate and record. Zealots point out that dividend yield should be at least two thirds of investment grade bond yields according to the Graham and Dodd original recipe.  The second is the earning power in the income statement.  This is measured by earnings yield which is also called the earnings per share or EPS.  A company with deep value would have an EPS at least double triple A bond yields and a price no greater than sixteen times earnings.  The third