This strategy is one of Ben Graham's most famous bargain stock strategies aiming to find stocks trading for less than their liquidation value. The idea is to find stocks trading at such a cheap price that you could buy the whole company and sell off all the assets at a profit with near minimal risk. It is a simplistic screen which just looks for stocks where the market cap is less than the so called 'Net Net Working Capital' (defined as Cash and short-term investments + (75% of accounts receivable) + (50% of inventory) - All Liabilities). The formula is very conservative in estimating the value of inventory and receivables due to the likelihood that not all will be collectible in a firesale. About such stocks Graham wrote: ‘ No proprietor or majority holder would think of selling what he owned at so ridiculously low a figure…In various ways practically all these bargain issues turned out to be profitable and the average annual result proved much more remunerative than most other investments’. This is not a strategy for the faint-hearted due to the high risk companies that qualify. Graham sought safety from individual bankruptcy risk by diversifying his portfolio with a large numbers of companies – he suggested 30. To learn more about this strategy please click here »
Known as the Father of Value Investing, wrote the Intelligent Investor
The Intelligent Investor: The Classic Text on Value Investing
by Benjamin Graham
Presents the philosophy of 'value investing', which helps protect investors against the areas of possible substantial error and teaches them to develop long-term strategies with which they will be comfortable down the road. This book enables you to make the right decisions to protect your investments and make them a success.
This screen is based on a UK dataset.
It uses the following criteria:
Results are sorted by:
And limited to the first 200 Results
Benjamin Graham Net Nets Screen Graphical History Returns| Timeframe | Screen Returns | FTSE 100 | Outperformance |
|---|---|---|---|
| 1 week | 0.44% | 1.44% | -1.0% |
| 1 month | -0.65% | 6.08% | -6.7% |
| 3 months | 1.37% | 5.68% | -4.3% |
| 6 months | 34.67% | 19.31% | 15.4% |
| 1 year | 29.20% | 23.73% | 5.5% |
| Since inception | 41.38% | 25.3% | 16.1% |
| Annualised | 27.52% |
Risk| Maximum Drawdown | -23.21% |
| Average No. of Holdings | 20.1 |
| Diversification Level | Good |
Chart based on an equal weighted portfolio of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.
Can't see the share you expect? View this screen as a checklist to find out why.
