RT Journal Article
SR Electronic
T1 Avoiding Financially Distressed Companies Using a Value Investing Heuristic
JF The Journal of Investing
FD Institutional Investor Journals
SP 73
OP 99
DO 10.3905/joi.2015.24.3.073
VO 24
IS 3
A1 Eben Otuteye
A1 Mohammad Siddiquee
YR 2015
UL https://pm-research.com/content/24/3/73.abstract
AB This article presents a value-investing heuristic based on a set of financial ratios rooted in Graham and Dodd’s [1934] definition of investment. We show that, by using this heuristic, an investor will avoid 100% of companies that become insolvent or experience some form of financial distress.TOPICS: Fundamental equity analysis, portfolio theory, portfolio construction