PT - JOURNAL ARTICLE AU - Eben Otuteye AU - Mohammad Siddiquee TI - Avoiding Financially Distressed Companies Using a Value Investing Heuristic AID - 10.3905/joi.2015.24.3.073 DP - 2015 Aug 31 TA - The Journal of Investing PG - 73--99 VI - 24 IP - 3 4099 - https://pm-research.com/content/24/3/73.short 4100 - https://pm-research.com/content/24/3/73.full 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