Even before his death in 1976, Graham highly recommended the strategy for small investors,

“………I consider it a foolproof method of systematic investment–once again, not on the basis of individual results but in terms of the expected group outcome.” 

Benjamin Graham

But what exactly did Graham mean by “in terms of the expected group outcome“?

As it turns out, a lot… and this is also the key to how a net net stock strategy can protect you against loss over the course of your life. Let’s get started.


First, Great Profits

Net Net Stock portfolios perform well. Multiple studies across time support this.

Systematic Value Investing Strategies - Eurozone

In fact, studies consistently peg the strategy’s performance at roughly 15% above the overall market’s return. Since the market on average has returned 10% per year, compounded, that amounts to a 25% average annual return.

Depending on the strategy you use, your performance can even be higher. Greenblatt was able to decimate the market by over 40% per year before