Thesis and overview
In the stock market bible, The Intelligent Investor, Benjamin Graham suggested a set of criteria for stock selection. These timeless criteria have helped and inspired millions of investors worldwide. These criteria turned buying stocks from a speculation into an investment.
However, the dream deals that fit all his original criteria have become almost extinct now (e.g., stock price below 2/3 of tangible book value per share, stock price below 2/3 of Net Current Asset Value, et al). However, from time to time, extreme market panics offer a rare entry window to pick stocks close to these dream criteria.
As you will see in the table below, now is one such time. So many good stocks (some excellent ones such as Goldman Sachs and T Rowe Price) are valued in the single-digit PE range, across a broad range of market caps…