‘Last Will’ was the last book of Graham. He wrote this book before his death. An aeronautical engineer, James Rea helped Graham in completing ‘Last Will’. According to the reports from ‘Stockopedia’, in the last book, Graham has catalogued ‘10 best performing stocks’. After distinguishing these stocks, Graham has extracted them into three decisive benchmarks.

The ‘10’ rules for selecting a healthy stock, as suggested by Benjamin Graham are as follows:

1. An earnings-to-price yield at least twice the AAA bond rate

2. P/E ratio less than 40% of the highest P/E ratio the stock had over the past 5 years

3. Dividend yield of at least 2/3 the AAA bond yield

4. Stock price below 2/3 of tangible book value per share

5. Stock price below 2/3 of Net Current Asset Value

6. Total debt less than book value

7. Current ratio great than 2

8. Total debt less than 2 times Net Current Asset Value

9. Earnings growth of prior 10 years at least at a 7% annual compound rate

10. Stability of growth of earnings in that no more than 2 declines of 5% or more in yearend earnings in the prior ten years are permissible.

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