In 1975, legendary value investor Benjamin Graham declared his net-net stock strategy so effective that he abandoned all other value investing methods. Warren Buffett echoed this sentiment in his 2014 shareholder letter, noting that this 'cigar butt' approach yielded the highest returns of his career. Contrary to the belief that net-net stocks are outdated, Graham's strategy remains highly relevant for small private investors today, just as it was for Buffett and other 'superinvestors' in their formative years. This book serves as a comprehensive guide to harnessing this powerful value investing method in contemporary markets. Author Evan Bleker has dedicated a decade to studying Graham's strategy, revealing its real-world performance, practical application, and underlying principles. He identifies additional criteria to enhance returns and increase the likelihood of success. The book outlines the strategy's philosophy, reviews academic and industry studies, and showcases its implementation by renowned investors like Graham, Buffett, and Peter Cundill. Additionally, it includes a practical checklist for stock selection and presents detailed case studies demonstrating the strategy's effectiveness in today’s market landscape.
