Personal Finance
Net Current Asset Value Strategy: How To Reap 30% Per Annum Returns Over 25 Years
By Seedly  •  August 10, 2019

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

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By Seedly
Launched in 2016, Seedly helps users make smarter financial decisions with its budgeting app which allows its 40,000 users to sync up their financial accounts and better manage their cash-flow. Last year, we introduced a new community feature which allows users to crowdsource knowledge from peers before making a financial decision.
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