In value investing, investors' more common tools include Price-Earnings ratio and Price-Book ratio. While more uncommon, net-net investing also has a strong following especially amongst Benjamin Graham's fans.
Net-net investing is based on a simple and strong idea: if the company is to liquidate today, you are definitely making a profit. You are sure because the company's current assets can pay for their total liabilities and the net of which is still worth more than the current share price. Yes, non-current assets are thrown in the mix for free.
On 7 June 2015, about 1 year ago, Motley Fool had identified 5 net-net shares in SGX. You may view the complete article here.
Lets see how these 5 companies are faring now:
As convincing as the idea sounds, net-net is not a sure-fire way to make money. This does not mean that there is anything fundamentally wrong with the idea ......