 Good day fellow investors! Chapter 13, a comparison of four stocks. At first I thought it will not be that interesting to discuss four stocks from the 1970s, but there is so much to learn, so that this might be one of the most interesting chapters we summarize of the intelligent investor from Benjamin Graham. So he compares four stocks, Eltra, Only Alive, Emerson Electric, Emory, Air Fright and M-Heart Corporation. And what we see here on the left column is what he focuses on. Net income, yes, but, earnings per share and then the average earnings per share over the last 12 years, plus the dividend, plus the balance sheet, how much debt each company has and of course the book value what you are paying for in comparison to what you own. A more detailed comparison shows that two companies of the four picked by Graham have price earnings ratio of 10, 11, 12 and two companies have price earnings ratio above 30. The price-to-book value is also hugely different. The second row, price-to-book value 1 for Eltra, 1.22 for M-Heart, but 6.37 and 14.34 for the other two. But earnings, they have been slower growth over the last 10 years for two companies, those with lower earnings, but still there has been growth and there has been huge growth for other companies, but not that much. For a company expensive at that point like Emerson Electric, this is not including inflation, you can see that Emerson Electric stocks went nowhere from 1970 till 1980. So 10 years it went really nowhere, it was down 50% because it had a very expensive start. So just in the long term, we have to look also at the short term and not overpay for that long term. In the long term Emerson Electric stock exploded lately and we can see it now at $70 which means 70 times what it was in 1980, not counting in the dividends. This is the main message I think of this chapter. Look at the prices from 1963 till 1968 of all the 4 stocks, 3 quarters to 50 was the high, so huge appreciation, 1 to 60, 60 times higher, 1.8 to 66 so what 500 times higher from low to high over 32 years and also 3.58 to 58. So huge differences over a time spent of 30 years. So we have to think ok not overpay in the short term, but be confident about our stocks in the very very long term. Back to the stocks, Emory that was a little bit expensive then, 1000 invested in 1972 would be still below 1000 in 1999 so it's not good to overpay for those stocks. Two companies Altra and Mhard have no data as they are merged and they were acquired. The message here is that short term investing and long term investing is both tricky but long term hold on to your winners and short term be careful what you own. The message is simple, it all boils down to business valuation, not overpay for a stock. Ingram always likes to focus on profitability, what's the valuation, what are the average long term earnings, stability, what can go wrong and what's the worst case situation for that stock, what were the lowest earnings in the last 10 years, growth, he wants again stable growth and not to overpay for impressive growth, dividends what he says what counts is continuance, Emerson is a dividend arrest aristocrat and look what happened over the last 35 years. Price history always something to focus on, really stocks could explode from 15 to 500 times higher than what they were in the past. Short chapter this time but we continue in the next chapters with the 7 statistical requirements for inclusion in a defensive investor's portfolio. That will be very interesting and those are summarized as follows, adequate size, a sufficiently strong financial condition, continued dividends for at least the past 20 years, no earnings deficit in the past 10 years, 10 year growth of at least one third in per share earnings, price of stock no more than one and a half times net asset value, price no more than 50 times average earnings of the past 3 years. So thank you for watching, looking forward to see you in the next chapter, stock selection for the defensive investor chapter 14.