In his book “The Intelligent Investor”, Ben Graham, the father of value investing, found that one strategy that worked well was to buy companies that are sold at below its net current asset value. He called those bargains. He wrote:
“The idea here was to acquire as many issues as possible at a cost for each of less than their book value in terms of net-current-assets alone – i.e., giving no value to the plant account and other assets. Our purchases were made typically at two-thirds or less of such stripped-down asset value. In most years we carried a wide diversification here – at least 100 different issues.”Modern value investors rarely have had the opportunities to invest in these “bargains”, until very recently. Inspired by our users, GuruFocus developed a “Graham Net Current Asset Value Screener”, to find these companies:
- The stock prices are less than the net current asset value of the companies – Benjamin Graham
- During the past 12 months, the companies generated postive operating cashflow.
- The company has no meaningful debt compared to its cash position.
|Symbol||Market Cap ($M)*||Date Added||When Added||Current||Change (%)|
|User||Portfolio Date||Days Passed||Gain||Annualized Gain||S&P500||Russell Microcap||Link|
- Ben Graham Net Currrent Asset Value Bargains: Companies sold at less than their book value in terms of net-cirrent-assets alone.
- Undervalued Predictable Companies: Predictable companies that are undervalued as measured by discounted cashflow model.
- Buffett-Munger Screener: Companies that are "buy good companies at fair prices" as defined by Warren Buffett and Charlie Munger.
- Predictable Companies: Companies that have the most consistent growth of revenue and earnings.
- Benjamin Graham's Net Current Asset Value Bargain Screener
- Where Are We with Market Valuations? What Can We Expect for the Next Decade?
- What worked in the market from 1998-2008? Intrinsic Value, Discounted Cash Flow and Margin of Safety
- What worked in the market from 1998-2008? Part II. Under-Valued Predictable Companies and Buffett-Munger Screener
- GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank