Benjamin Graham Margin of Safety: Our Automated Screening Engine

Understanding the Margin of Safety Discipline

Benjamin Graham, the founding father of value investing, established the concept of the Margin of Safety in 1949. The fundamental premise is simple: buy equities at a significant discount to their intrinsic value to protect capital against human error, market volatility, and economic downturns.

Our 4 Core Factor Screening Rules

• Price to Earnings (P/E) < 15.0x: We restrict value candidates to equities trading below historical market multiples.
• Debt to Equity < 0.50: Balance sheet health is mandatory. High debt loads erode intrinsic valuation during high-interest-rate environments.
• Return on Equity (ROE) > 15.0%: Sustainable capital compounding requires high management efficiency.
• Current Ratio > 2.0: Liquidity protection ensures working capital resilience.

Automated Continuous Audit

Every stock flagged by our quantitative screening engine is automatically tracked in real-time. We record entry price, target price, and stop-loss levels, auditing performance directly against the S&P 500 Index.