TY - JOUR T1 - Avoiding Financially Distressed Companies Using a Value Investing Heuristic JF - The Journal of Investing SP - 73 LP - 99 DO - 10.3905/joi.2015.24.3.073 VL - 24 IS - 3 AU - Eben Otuteye AU - Mohammad Siddiquee Y1 - 2015/08/31 UR - https://pm-research.com/content/24/3/73.abstract N2 - 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 ER -