Bloomberg Equity Screening (EQS) Exercise: Benjamin Graham Value Investing

Abstract

I show you how to use the Bloomberg Professional Service (i.e., the “Bloomberg Terminal”) to execute a Benjamin Graham value investing exercise using Bloomberg’s equity screening (EQS) function. I used this exercise very successfully for 15 years in a final-year undergraduate Applied Investments course, using Crack (2024) as the textbook. During this period, I gave this exercise to over 1,800 undergraduate students, typically working in groups of three to five students.

This hands-on Bloomberg exercise is naturally ChatGPT-proof, by construction.

The two appendices give detailed instructions on using Bloomberg’s EQS function and avoiding common mistakes, respectively. If you want to use Bloomberg’s EQS function for a different exercise (e.g., growth-oriented investing, or ESG investing, rather than value investing), then you can follow the detailed instructions given in the appendices, but implement your investing exercise using your own investment criteria.

I take a formula-based approach to the EQS function here. You can, however, take an Add Criteria–based approach, as discussed in the ESG-based Bloomberg stock (EQS) and bond (SRCH) investing exercise presented in Crack (2023c).

Keywords: Bloomberg Professional Service, Bloomberg Terminal, Value investing, Benjamin Graham, Equity Screens, EQS function, BMC Certification, ChatGPT

JEL Classification: G11, G12, A22, A23