Fusing Common Sense Investing Methods

After publishing yesterday's column about my observations of what has and hasn't worked over the past 30 years, I thought it might be interesting and potentially profitable to try and combine the three methods of common sense investing to see if I could find some stocks that exhibited characteristics of all three approaches. I dialed up a stock screener to see what common sense stocks I could find that might be sensible long-term investments.

I searched for stocks that had a history of solid book value and dividend growth that also trade at reasonable valuations. Specifically, I looked for a decade of 10% average annual growth in book value and dividends that traded for less than 2x book value and 15x earnings. I worked the list down to those whose price-to-book value ration multiplied by the price-to-earnings ratio (P/E) was less than 22.5. I came up with a pretty short but interesting list of stocks worth consideration by long-term investors....591 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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