By Stephen Gandel

(MONEY Magazine) – Last July we argued that the wisdom of investing legend Benjamin Graham never goes out of style, and we adapted his stock-picking methods to find winning investments. So does the father of value investing still have his mojo? You bet. The portfolio's up 31% vs. the S&P 500's 12%. Of six picks, five rose more than 20%. Electronics retailer Circuit City (CC) rose 89%. Only energy company El Paso (EP) fell, losing 20%. The other results: disability insurer UnumProvident (UNM), up 24%; bond insurer MBIA (MBI), up 21%; restaurant chain IHOP (IHP), up 31%; and builder Centex (CTX), up 44%.

El Paso, MBIA and UnumProvident still pass Graham's value screen. Demand for MBIA's insurance continues to rise, and a better economy usually means fewer disability claims, a plus for UnumProvident. But El Paso's earnings haven't rebounded as expected, and it has sold choice assets. It's a potentially dangerous cycle. We'd sell and move on. --STEPHEN GANDEL