In the book "Intelligent Investor", Graham recommends a minimum annual sales figure of 100 Million $ as one of the criteria.
How do we adjust this figure for Inflation and a country other than the USA - i.e. a particular minimum sales may indicate a good size in the USA, but the figure may be different for different countries. Does anyone have an idea as to how Graham reached this figure - so that similar figures can be reached for other countries.
From the book, Chapter - Stock Selection for the Defensive Investor
- Adequate Size of the Enterprise.
All our minimum figures must be arbitrary and especially in the matter of size required. Our idea is to exclude small companies which may be subject to more than average vicissitudes especially in the industrial field. (There are often good possibilities in such enterprises but we do not consider them suited to the needs of the defensive investor.) Let us use round amounts: not less than $100 million of annual sales for an industrial company and, not less than $50 million of total assets for a public utility.