Is there a simple and powerful investing formula that could make you rich?

That is the question I have been asking myself lately while diving deep into the literature surrounding Benjamin Graham’s Net Current Asset Value (NCAV) Strategy.

According to several studies, this strategy returned more than 30% per annum over 25 years.

For context, this turns a principal of $10,000 to over $7 million after 25 years.

Source: Friday | giphy TL;DR: Grow Your Wealth With The NCAV Strategy

The NCAV formula is very easy to implement.

All you need to do is buy shares that are trading at less than two-thirds of the net current asset value and hold them for a specified period.

Or:

Market Cap < ⅔ Net Current Asset Value

That’s it.

Sounds a bit too good to be true right?

But first, let’s try to understand the strategy and see if such returns