Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Brinks who wrote (20072)	11/16/2004 12:26:54 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78648

regarding: "BTW there is only about 20 net-nets now. There are other places on the internet that follow these from time to time." If you can provide any further info. here, I'd be interested. ----------- There are several ways to look at net-nets. I believe - but I cannot verify this - that Dr. Graham's net-nets would all be of profitable companies. The examples in Intelligent Investor were all of profitable companies. But this was not explicitly stated as a requirement. The Jim Clarke approach where the underlying business of the net-net is evaluated. (including but not limited to profitablity) This may be your method as well. It's a further screen after the net-net screen. The, ahem, Paul Senior approach. Just give me a list of net-nets and I'll pick a mostly random sample. (I learned from SINA that I don't judge very well. I dismissed that net-net and it subsequently went up - without me - maybe 50x). I'd be looking to buy roughly 2/3 of net-net price. Violating my preference for not judging and violating my preference for 2/3 -- because I can't find any that I don't already own that are like that - I've been slowly accumulating FAVS, where I estimate net-net for this unprofitable cigar butt to be $4.5/sh. vs. stock price of $3.65 finance.yahoo.com All the net-nets I've bought have eventually worked out. Although some took a LOT longer to move up than I had patience to hold on for. Also, if one calculates the time value of money on some of my net-nets, then although they may have moved up above my buy price, some really haven't been "profitable" because I had to hold them so long. I'm holding about five below-cash plays now. None has done well this year, and the managements of several have further frittered away cash which has reduced my margin of safety.