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

To: Jurgis Bekepuris who wrote (55620)	7/4/2015 7:40:41 PM
From: Graham Osborn	1 Recommendation Recommended By Jurgis Bekepuris Read Replies (2) \| Respond to of 78628

I must say I've been tremendously disappointed at the quality of net-nets being turned up by mechanical screen at least. If I think about it it makes a certain amount of sense - there are thousands of folks calling themselves Grahamians out there and the net-net is the quintessential Graham screen. Even Graham noted the virtual absence of these in a mature bull market. What he describes as net-nets are good albeit secondary companies (decent growth prospects, consistent positive earnings) that just happen to be selling at or below NCAV - companies like CBI in short. I'd sooner expect to find a Martian than a CBI parading as a net-net under present conditions. There are of course burned-out biotechs like TBGNF where you can look at the cash burn vs available cash and try to price it as an option. But that is very anti-Graham. Like you and Spekulatius, I've essentially given up on buying a dying business at a discount (even if it is the next Berkshire).