However what concerns me, and what I'd like some help on, is that just because a companies stock is trading below the NCAVPS should it be considered an investment opportunity? Surely there needs to be more than that, more fundamental analysis. Should you also look for strong financial strength, positive cash flow, no deficit in earnings too?
I say no further additional financial analysis required. I check for other warts though (e.g. self-serving managments) And I want to buy and hold a package of these 2/3 NCAVPS stocks, not just one or two.
In my experience past 15 years, this has worked out moderately poorly. lol. Well, for one thing, I'm not going to commit anything other than a very small portion of my capital to the cigar-butts. Which are hard to find. And the ones I do find often are on such lists for years, if not decades (perhaps they are value traps).
So ultimately, my overall profit with these is insignificantly small.
Other, best investors on this thread (e.g. Jim Clarke, investing pro who doesn't post here anymore) insist on only considering profitable companies. What does Ben Graham say? Well, he doesn't. However, EVERY NCAV example in his book is of a profitable company. Try to find several of these, these days. Hah. |
