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J. Royden Ward is the Editor of the Cabot Benjamin Graham Value Letter (available at BenjaminGraham.net and Cabot.net).

In 1946, Dr. Wilson Payne, Dean of the Investment Department at Babson College, and Benjamin Graham, professor of Advanced Security Analysis at Columbia University and investment advisor with the Graham-Newman Corporation, collaborated to devise formulas that would estimate a fair value range for stocks based on Mr. Graham’s guidelines. The fair value range indicated the high and low price range for the next 12 to 24 months for each stock. The formulas were based on the 10 year histories of price, sales, cash flow, earnings, dividends, and book value per share for each company.

In 1969, Dr. Wilson Payne and J. Royden Ward, Director of Research at Econometrics Research and Management in Boston, teamed up to develop computerized models that would utilize the formulas that Dr. Payne and Benjamin Graham devised to estimate a fair value range for stocks 23 years earlier. The models were successfully back-tested to check their validity in the difficult stock markets of the 1960’s. In addition to the fair value models, Dr. Payne and J. Royden Ward added Benjamin Graham’s guidelines for standards of quality, standards of quantity, and standards of earnings growth to their analysis model. The resulting product was purchased by J. Royden Ward and made available to institutional investors during the next 30 years.

The models, based on the value approach taught by Benjamin Graham, are now offered to private investors in the Cabot Benjamin Graham Value Letter. The Cabot Benjamin Graham Value Letter includes current market conditions, market forecasts, and his opinion of the prevailing economic conditions. Stocks are recommended in the two value Models:

• The Classic Benjamin Graham Value Model screens the Benjamin Graham Data Base monthly to detect the stocks that meet Benjamin Graham’s seven original criteria for value. Subscribers are told exactly when to buy and when to sell.

• The Wise Owl Model forecasts a trading range for the Dow Jones Industrial Average every six months. Subscribers can gauge whether the stock market is undervalued or overvalued using our high/low estimates for the market. Other Special Features include analyses of small cap stocks, high yielding stocks, REITS, and other topics.

Cabot Heritage Corporation
176 North Street
Salem, MA 01970
(978) 745-5532

The above description was assembled using information from the publisher's site. All registered or unregistered trademarks referenced herein are the property of their respective owners, and no trademark rights to the same are claimed.

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