Ruerd Heeg
Long/short equity, Deep Value, special situations, book author

Charm Communications Shareholders Will See High Returns

Net-nets

One of the most obvious deep value investments are stocks of companies selling below net current asset value. This is widely known: Benjamin Graham first wrote on these stocks in his famous book Security Analysis in 1934. Other market participants noticed his success resulting in a lack of net-nets to invest in during the 1950s. This was only temporary. During the 1970s net-nets appeared again. Graham noticed and just before he died he recommended investing in net-nets again.

Less well known is that others have been verifying the statistical foundation of his investment advice. The results are astonishing: several publications find average returns of around 30% when solely investing in net-nets for 20-25 years, see for example the paper...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details