Continuing the quantitative value investment theme I’ve been trying to develop over the last week or so, I present my definition of a simple quantitative value strategy: net nets. James Montier, author of the essay Painting By Numbers: An Ode To Quant, which I use as the justification for simple quantitative investing, authored an article in September [...]
Archive for the ‘Net Quick Value’ Category
Montier on net nets: A simple quantitative value strategy
Posted in About, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Montier, NCAV, Net Current Asset Value, Net Net, Value investing on January 21, 2010 | 9 Comments »
Introducing the Monthly Net-Net Watchlist
Posted in About, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Quarterly Net-Net Watchlist, Stocks, tagged Liquidation Value, Net Current Asset Value, Net Net Stock, Net Quick Value, Quarterly Net-Net Watchlist on October 13, 2009 | 4 Comments »
We’ve recently been using the GuruFocus Benjamin Graham Net Current Asset Value Screener (subscription required) to generate regular watchlists of net net stocks. The GuruFocus NCAV screen has some superb functionality that makes it possible to create the watchlist from the screen and then track the performance of those stocks. We created our first watchlist [...]
Marty Whitman discusses Graham’s net-net formula
Posted in About, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Liquidation Value, Martin Whitman, Net Current Asset Value, Net Net Stock, Net Quick Value on July 28, 2009 | Leave a Comment »
In the following video, legendary value investor Marty Whitman discusses Benjamin Graham’s net-net formula and his adjustments to it. We’ve previously covered those adjustments here, but we’ve added the video because we think it’s quite amazing to see the great man explaining his rationale for making them. The highlight, from our perspective, is this gem: We [...]
Marty Whitman’s adjustments to Graham’s net net formula
Posted in About, Greenbackd, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Liquidating Value, Martin Whitman, Net Cash Stock, Net Current Asset Value, Net Net Stock, Net Quick Value, Third Avenue Value Fund on May 4, 2009 | 11 Comments »
Long-term readers of Greenbackd might remember our initial struggle to apply the net net / liquidation formula described by Benjamin Graham in the 1934 Edition of Security Analysis in the context of modern accounting. Putting aside our attempt to include and tweak the discounts to PP&E (kind of like fixing the smile on the Mona [...]
Tweedy Browne updates What Has Worked In Investing
Posted in About, Greenbackd, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Liquidating Value, Net Current Asset Value, Net Net Stock on April 3, 2009 | 36 Comments »
Tweedy Browne, the deep value investment firm established in 1920, has updated its booklet, What Has Worked In Investing (.pdf). First published in 1992 and now updated for 2009, the booklet discusses over fifty academic studies of investment criteria that have produced high rates of investment return. Our interest in the booklet stems from its [...]
Seth Klarman on Liquidation Value
Posted in Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Seth Klarman, Stocks, tagged Liquidating Value, Net Current Asset Value, Net Net Stock, Seth Klarman on March 18, 2009 | 7 Comments »
Seth Klarman, the founder of The Baupost Group, an exceptionally well-performed, deep value-oriented private investment partnership, is known for seeking idiosyncratic investments. The Baupost Group’s returns bear out his unusual strategy: Over the past 25 years, The Baupost Group has generated an annual compound return of 20% and is ranked 49th in Alpha’s hedge fund rankings. [...]
And never breath a word about your loss
Posted in About, Liquidation, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Liquidating Value, Ricardo Salinas on February 6, 2009 | 4 Comments »
CNBC has an interview with Ricardo Salinas, the Mexican billionaire who took a position in Circuit City Stores Inc (OTC:CCTYQ) after it fell into bankruptcy and lost $41 million. In the interview with Michelle Caruso-Cabrera, Salinas explains why he made his bet on CCTYQ and how it went wrong. Although Salinas’ CCTYQ investment wasn’t a Grahamian [...]
Changes to Greenbackd’s presentation of summary balance sheets
Posted in About, Greenbackd, Liquidation Value, Net Current Asset Value, Net Quick Value, tagged Liquidating Value, Net Cash Stock, Net Current Asset Value, Net Net Stock on January 20, 2009 | 4 Comments »
We are trialing a change to our summary presentation of company financial statements. The new summaries will look like this (this is our summary balance sheet for Aehr Test Systems (NASDAQ:AEHR) – it’s cheap but there’s no catalyst): A brief explanation of the various changes: A. shows the carrying value of the receivables ($14.8M), our [...]
Portfolio construction
Posted in About, Greenbackd, Greenbackd Portfolio, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Investing, portfolio construction, Value investing on January 15, 2009 | 2 Comments »
In our last post, we discussed our approach to long-term and fixed asset valuation. We concluded that, given our inability to actually value any given asset or class of assets, the best that we could do is fix a point at which we feel that we are more likely to be right than wrong about [...]
Valuing long-term and fixed assets
Posted in About, Greenbackd, Liquidation Value, Net Cash Stocks, Net Current Asset Value, Net Net Stocks, Net Quick Stocks, Net Quick Value, tagged Benjamin Graham, Liquidating Value, Net Cash Stock, Net Current Asset Value, Net Net Stock, Net Quick Value, Security Analysis on January 15, 2009 | 13 Comments »
We’ve recently received several questions about our valuation methodology. Specifically, readers have asked why we include property, plant and equipment in our valuation, and why we only discount it by half, as opposed to a higher figure (two-thirds, four-fifths, one-hundred percent). They are concerned that by including property, plant and equipment in our assessment, or [...]
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