Today, plenty of free Internet tools exist to screen for stocks trading below their accounting book value or their net working capital. Buying an equal-weighted basket of these types of properly selected stocks and holding them for a year or two (one of Tobias Carlisle’s strategies) has proven to be very effective historically. But, if you want to make more concentrated bets like Buffett did, you’re going to have to do some analysis, and that starts with understanding the actual economic value (realizable liquidation value) of a company’s assets.
