%0 Journal Article %A Eben Otuteye %A Mohammad Siddiquee %T Avoiding Financially Distressed Companies Using a Value Investing Heuristic %D 2015 %R 10.3905/joi.2015.24.3.073 %J The Journal of Investing %P 73-99 %V 24 %N 3 %X 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 %U https://joi.pm-research.com/content/iijinvest/24/3/73.full.pdf