Q: On page 114 of your book Safe Strategies for Financial Freedom you discuss how to calculate Graham’s number. Is Graham’s number still a valid concept? Using Yahoo and IBM for a sample calculation. I get an unrealistically low number. Am I doing something wrong? Thank you, Walter
A: The Graham’s number system is still realistic and my son Robert has had some highly profitable trades from it in the last year. Based on those trades, he went on to research the method further and will be teaching his system in our new Great Systems for Bear Markets workshop next year. The system’s R-Multiples are amazingly high— when the system is traded in the proper market conditions. I have no idea what the numbers are telling you for IBM, although I have trouble believing it would be a good Graham’s number candidate at the moment. —Van
