Net Nets : a Value strategy

Investing / Portfolios
102

Previous advice about getting the data:

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103

Hello guys,

Just wanted to update you that as of now, the netnet are almost completely dried out in us and europe, I have found some in Japan as always but the return tend to take longer and are not as strong as in the USā€¦ Anyways now we need to wait again for a correction or try it out in Japan, i had like 10-20% of my portf i netnet and worked very well. What are your experience guys??

I read the new book from Nethunter cigar butt investing graham style and I found it very good as an how to approach this but the rules are very simple just diversify enough :slight_smile:

Thanks and stay safe

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104

Hi! I was also looking for a diversification of the classic passive ETF-based portfolio, and Iā€™m desperately trying to find net-nets (and maybe an online screener to pass me the very boring balance sheet ā†’ excel calculation process), but I couldnā€™t find any that is quite reliable and not a pharma or chinese oneā€¦

Do you have any ideas on how to search for it? I like IT, but Iā€™m not in the field and have no idea how to use an API and to create a screener :smiley:

105

Iā€™ve used magicformulainvesting.com before, they have a screener for free.

107

This is true in most cases as most if not all listed companies are limited liability companies. However, there are theoretically other corporate forms including unlimited liability companies where the shareholders would indeed by liable for the debts.

108

Did you ever look at coal? A few years ago this was one hugely down and out of favour with huge cash flows, dividends and valuable carbon in the ground. Whitehaven coal dipped below $0.50 even before covid and then peaked at over $10 in 2022. Thatā€™s >20x in 6 years. (or >10x in 2 years if you bought the covid dip). Thatā€™s not even counting the huge double digit dividends it paid out.

109

Yes, since last year I am long AMR. Very happy with it so far. Sadly i was not aware of it when it was trading at 2$/share, it must be one of the best performing stocks stocks since 2020. Almost a 200 bagger in 3 years.

I bought it around $140/share. I donā€™t remember if it was a net net at the time, but even with my quality bias it was way too cheap to ignore:

  • no debt on the balance sheet
  • generating $600 Million FCF per year
  • trading at the time at a market cap of roughly $1 billionā€¦ at this price they were buying back shares like crazy, i think since last year they must have bought back 40% of outstanding shares
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