If there is any reason to be jealous of Warren Buffett, it is that he was a value investor at a time when tons of stocks traded below book value. Of course, Buffett had to do a lot more than run stock screens on incredibly powerful computers, like manually calculating book values and finding the companies (and sometimes shareholders) in the first place.
That being said, when a stock trades below book value today, I assume there are some serious issues. Reasons for stocks trading below book value often include a declining industry, rapidly declining business, or a business that no longer acts as an operating company.
A Quick Background
Bassett Furniture (NASDAQ:BSET) is a rare company that...
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