There are various ways that you can make (or lose) money in the stock market. These returns can be boiled down to: Dividends or other cash payments Changes to the intrinsic value of the underlying company Changes to Mr Market‘s mood (and therefore share prices) But there is another way. As a value investor...
If you run a net-net screen of some kind it’s likely that you’ll have come across this (very) small cap stock. Titon Holdings is a Ben Graham net-net in almost every way. It’s a manufacturer, it has property, plant, fittings and fixtures and equipment to bolster his beloved tangible asset value. It also has...
Tesco is the largest supermarket in the UK with over 2,000 stores here and around half a million staff worldwide. It’s a monster. It’s the dominant player in a recession-proof industry and has Warren Buffett on board as a major investor. So if the Christmas results for a single year were a bit disappointing,...
The first lucky recipient of the 21st century net-net badge of honour is PV Crystalox Solar, one of the world’s leading providers of photovoltaic silicon wafers. The company meets the requirements by having a price to book ratio of 0.07, ditto for price to tangible book, a price to sales of 0.08 and a...
One of the most enduring investment strategies for ‘deep value’ investors was defined by Ben Graham way back in (at least) the 1940′s. The approach was to buy shares in companies where the market cap was less than the value of the company’s current assets minus all of its liabilities. This was a simplified...
When I started out as a value investor my original plan was to hold 10 companies. I thought that this would be enough diversification to reduce volatility by a sufficient amount such that I would be able to sleep well enough to stick with the investment program. At the time my approach involved fairly...
