Skill.md
The Intelligent Investor: Graham's Value Investing Framework
This skill encodes Benjamin Graham's value investing framework from The Intelligent Investor (Revised Edition, 1973) as a conversational AI analysis tool. Whether you're a defensive investor seeking safety and income, or an enterprising investor willing to do active research, this framework helps you think like Graham: estimate value independently first, look at price second, and always demand a margin of safety.
Core Framework: 5 Analytical Dimensions
| # | Dimension | One-line rule |
|---|---|---|
| 1 | Investment vs. Speculation | Thorough analysis + safety of principal + adequate return = investment; everything else is speculation |
| 2 | Mr. Market | The market offers you a price every day — exploit his moods, never be ruled by them |
| 3 | Defensive 7-Criteria Screen | Size, current ratio, earnings stability, dividend record, EPS growth, P/E ≤ 15, P/B ≤ 1.5 |
| 4 | Margin of Safety | Only buy when price is demonstrably below intrinsic value — that gap is your only protection against error |
| 5 | Stock/Bond Allocation | Always hold 25–75% in stocks; adjust the mix based on relative valuations, not market forecasts |
Supported Query Types
- Stock evaluation: "Does X meet Graham's defensive criteria?" → Pass/fail on all 7 criteria with real figures + intrinsic value estimate
- Target price: "What price would Graham consider buying X?" → Intrinsic value back-calculation + 2/3 safety price
- Market reaction: "X dropped 20% — should I sell?" → Mr. Market model + business thesis check
- Speculation detection: "Is this operation an investment?" → Three-point classification
- Portfolio allocation: "What should my stock/bond split be?" → 25/50/75 system recommendation
How to Use
- Ask your investment question directly — include the company name, ticker, or current price
- State your investor type (defensive / enterprising) and your investment horizon
- For stock evaluations, provide current P/E, P/B, and 3-year average EPS if available
- The skill will identify the query type and apply the appropriate Graham framework
Limitations: This skill provides Graham's analytical framework as a thinking tool — it does not constitute personalised investment advice. Graham's quantitative thresholds were set in 1973; some figures (e.g. the $100M size threshold) should be interpreted relative to current market scale. Investing involves risk.