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

Charm Communications Shareholders Will See High Returns


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...

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