Posted by NOBY > 2015-01-23 15:54 | Report Abuse

Interesting. If you can show a preview on how net net stocks have performed using some back tested data in bursa Malaysia, I would seriously consider buying your book. Such studies are extremely lacking in markets like Malaysia

Posted by Intelligent Investor > 2015-01-23 16:06 | Report Abuse

Walter Schloss pratices this and able to achieve a very good return. Over the 45 years from 1956 to 2000, his fund earned an astounding compound return of 15.7%.

But, it is not a sure win strategy. We have to take note that the original ‘bargain’ price probably will not turn out to be such a steal after all
- “in a difficult business, no sooner is one problem solved than another surfaces – never is there just one cockroach in the kitchen.
- Second, any initial advantage you secure will be quickly eroded by the low return that the business earns.”

There are some Quantitative Criteria and Qualitative Criteria recommended by Evan Bleker to help to minimize the risk. I have summarize the key point in http://intelligentinvestor8.blogspot.com/2014/06/checklist-against-ncav-stocks.html