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• Ben Graham Net Current Asset Bargains - $99/Year, Subscribe >>
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Ben Graham Net Current Asset Bargains (Monthly Newsletter)

In The Intelligent Investor, Benjamin Graham discussed the methods he used in his investment firm Graham Newman. One is them is what he called Net-Current-Asset (Or “Bargain”) issues.

Current Issue:

March 1, 2010 - Download

Issue Archive:

• Feb. 1, 2010
• Jan. 1, 2010
• Dec. 1, 2009
• Nov. 1, 2009
• Oct. 1, 2009
• Sept. 1, 2009
• Aug. 1, 2009
• July 1, 2009
• June 1, 2009

On page 381 of the updated version of "The Intelligent Investor" Benjamin Graham discusses the Net-Current-Asset (or "Bargain") valuation method. The idea was to acquire shares in companies at a cost for each that was less than their book value in terms of net current assets alone, while giving no value to the plant property or other assets.

As described in the subscript on page 391 of the "Intelligent Investor" Graham's Net Current Asset valuation means taking only the current assets and subtracting the total liabilities. These are the type of bargains this report will cover in depth. Graham’s “net current asset value” approach, apparently works very well. One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham’s strategy produced similar results. Through this monthly report, GuruFocus will highlight the top 5 bargains using the net current asset valuation method.

Ben Graham’s net-net strategy worked well for him. Modern value investors rarely have had the opportunities to invest in these “bargains”, until Mr. Market presented these opportunties to value investors in the recent crashes. GuruFocus developed a “Graham Net Current Asset Value Screener”, to find these companies. Portfolio built based on Nov. 24, 2008 gained more than 50% in five months, even the market was slightly down.

Throughout the year, GuruFocus will issue research report on five of the top Net Current Asset (NCA) Bargains each month to readers. If you are a Premium Member ($249/year) or a subscriber of this newsletter ($99/year), you can access this report free. If you are not a subscriber or Premium Member, we invite you for a 7-day Free Trial.

Buffett Munger Best Bargains (Monthly Newsletter)

This newsletter will seek to find companies that have favorable long term prospects based on what Buffett and Munger "MIGHT" look for. By no means are we trying to replicate their current holdings nor are we trying to predict what they may buy next. We simply want to try to preemptively find those companies that Buffett and Munger could be buying right now.

Current Issue:

Feb. 15, 2010 - Download

Issue Archive:

• Jan. 15, 2010
• Dec. 15, 2009
• Nov. 15, 2009
• Oct. 15, 2009
• Sept. 15, 2009
• Aug. 15, 2009
• July 15, 2009
• June 15, 2009

By taking the Buffett Munger Screen, GuruFocus will attempt to find the best 2 stocks that

(1) Have at least 10 years of profit and book value growth
(2) Possess High Returns on both Equity and Total Capital
(3) Are priced with the highest current rate of return (yield)
(4) Have a favorable outlook going forward

Each month we will present up to 2 companies that we feel meet these criteria. These, in our opinion, will provide the very best opportunity for long-term growth.

Remember, that Warren Buffett and Charlie Munger have followed the Ben Graham theory on investing in companies using a “businesslike” approach with some distinct differences.

Namely, Buffett, with the help of Munger, now focuses on the long term prospects of the business extending beyond just the fundamentals into the brand and management of the business. A great brand can withstand poor management, but very seldom does it work in reverse. Therefore, this newsletter will look at the company’s business model, history, management, and market in order to find the margin of safety and intrinsic value.

Also, since even good businesses can vanish if they lose their competitive advantage, this report will seek to find those companies that offer the highest current yield. Through this we feel the owner can earn the highest return with the least amount of risk.

Throughout the year, GuruFocus will present up to 2 companies that we feel meet this criteria each month to readers. If you are a Premium Member ($249/year) or a subscriber of this newsletter ($99/year), you can access this report free. If you are not a subscriber or Premium Member, we invite you for a 7-day Free Trial.