Benjamin Graham’s Net-Net Stock Strategy: A practical guide to successful deep value investing in today’s markets

by Evan Bleker

IN 1975, legendary value investor Benjamin Graham wrote that his net-net stock strategy worked so well that he had renounced all other value investing strategies.In his 2014 shareholder letter, Warren Buffett wrote that he earned the highest returns of his career employing this ‘cigar butt’ approach to investing. And despite the widespread assumption that net-net stocks are a relic of the past, Graham’s net-net stock strategy is just as viable today for small private investors as it was for Buffett’s ‘superinvestors’ during their early careers. Net-net investing remains the most powerful value investing approach a small investor can adopt.This book is your ultimate practical guide to implementing it – and reaping the rewards – in today’s markets.Evan Bleker has spent ten years studying Graham’s strategy to uncover its real-world performance, how to employ it, and why it works. He’s also dug deeply to identify additional criteria to boost returns and ensure a greater number of winners. In this book, Evan defines the strategy for investors, then walks readers through the strategy’s philosophy, as well as academic and industry studies assessing the framework, and its implementation by world-class value investors such as Benjamin Graham, Warren Buffett, and Peter Cundill. He also compiles selection criteria into a practical checklist for investors, and documents how the strategy works in today’s markets with exclusive detailed case studies.

Genres: Finance

370 pages, Kindle Edition

Published July 14, 2020

Reviews

[MeltingIcecream · Rating 5 out of 5]

Ive read the intelligent investor and the security analysis many times but i still failed to grasp some of the ideas therein especially as to net net investing. Those books are so technical and requires intermediate if not expert understanding of finance. Reading this book, however, put some light on my ignorance on net net investing. In fact, i would even argue that one MUST also read this book when reading the aforementioned classic books. Evan Bleker clearly discussed net net investing-its valuation process, benefists, risks, etc. Great read. Every worthwhile library must have it.

[Brian · Rating 5 out of 5]

One of the best books on investing I've read. Few people realize that legendary investors like Warren Buffett and Walter Schloss made their first millions investing in net-nets. People with small amounts of money like me should invest only on net-nets until your capital becomes too big to invest in them. Now I realize that people got it all wrong, many small money investors invest in large-cap stocks and try to emulate billionaire investors when they should be investing in small-caps since those companies are not accesible to them and the competition is less intense. The bigger your capital, the slower your growth because your investing opportunities shrink as your capital grows and putting small % of your money on micro-caps won't move the needle in your portfolio. You will get a better ROI by investing in assets (net-nets) when you are small than by investing in earnings growth, p/e, dcf, etc. Leave that to the big players, you won't need them if you have under $1 million.

[Brian · Rating 5 out of 5]

Concise guide to net net investing that any investor can use to get started using the strategy. Evan does not just tell you what to do, but also why including all the compelling empirical data spanning a century of its success. Evan also breaks new ground applying it to new markets that have just recently become accessible to western investors at a time when there are not many net nets to choose from in the United States. Great book!