July Ben Graham Net Current Asset Bargains Newsletter is now available.
In June we released our first issue of Ben Graham Net Current Asset Bargains. Now it is time to release our July issue. We recommended 5 stocks in June, today we again highlight 5 stocks.
Since the release of the first issue, the five stocks we recommended have done well. Since June the S&P500 has been down by more than 2%, but the five stocks we recommended are up by an average of 11%, outperforming the market by more than 13% in a month. Among the five stocks we highlighted, two are down for less than 6%, the other three appreciated in prices, with the highest gainer gained more than 46%. On average, they gained 11%.
It is not surprising that the Ben Graham Net Current Asset Bargains outperformed the market. It worked for Ben Graham, and it works for us too.
If you are not familiar with Ben Graham Net Current Asset Bargains, 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.”
Graham’s “net current asset value” approach worked 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.
Graham’s “net current asset value” bargains were not around much for modern value investors. But the recent drastic decline of the stock market has created these opportunities. In order to help our users to spot these bargains, we started Ben Graham Net Current Asset Bargains Newsletter in June. It is off a good start!
July Issue is now available. It is Free to Premium Members and Newsletter subscribers. To access this newsletter, take a Free Trial
In June we released our first issue of Ben Graham Net Current Asset Bargains. Now it is time to release our July issue. We recommended 5 stocks in June, today we again highlight 5 stocks.
Since the release of the first issue, the five stocks we recommended have done well. Since June the S&P500 has been down by more than 2%, but the five stocks we recommended are up by an average of 11%, outperforming the market by more than 13% in a month. Among the five stocks we highlighted, two are down for less than 6%, the other three appreciated in prices, with the highest gainer gained more than 46%. On average, they gained 11%.
It is not surprising that the Ben Graham Net Current Asset Bargains outperformed the market. It worked for Ben Graham, and it works for us too.
If you are not familiar with Ben Graham Net Current Asset Bargains, 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.”
Graham’s “net current asset value” approach worked 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.
Graham’s “net current asset value” bargains were not around much for modern value investors. But the recent drastic decline of the stock market has created these opportunities. In order to help our users to spot these bargains, we started Ben Graham Net Current Asset Bargains Newsletter in June. It is off a good start!
July Issue is now available. It is Free to Premium Members and Newsletter subscribers. To access this newsletter, take a Free Trial
