If you find a stock selling for less than its working capital, it means you get all its non-current assets and future earnings for free. Just make sure it’s a healthy (even if mediocre) business.

Net-Current-Asset-Value is the king of metrics when finding undervalued stocks. There’s a myth they no longer exist, but they’re out there.

If you want to outperform the market while also sleeping soundly at night, find stocks that appear cheap to both assets and historical earnings.

When a stock looks cheap to its tangible assets it can offer significant downside protection. It’s usually already near rock bottom. Like finding £20 notes on the street.

📚 "Investing vs. Speculating: Know the difference! Graham's 'The Intelligent Investor' teaches us that thorough analysis and safety of principal are key. It’s worth a read if you haven’t already…

Unlike speculative trading, deep value investing focuses on fundamentals and offers a substantial margin of safety. I recommend you learn more about why this approach can outperform mainstream strategies. The extra payoff is definitely worth the effort.

When a stock looks very cheap to its historical earnings it can be a fantastic opportunity for significant upside.

Quantitative value investing offers more stable returns and less active portfolio management over time. Less business analysis requires more diversification. 20-30 stocks can be optimal for a fully quantitative approach, although Schloss owned 100 stocks in his portfolio.

The Washington Post Company Pension Fund, managed by various value-focused managers, achieved a 21.8% annual return from 1978 to 1983, demonstrating the power of a value-oriented investment approach even within a diversified fund.

📉 During the 1973-74 market crash, value stocks fell 27%, while growth stocks plummeted 60%.

Warren Buffett pioneered the world's greatest business model. He started with small capital and flipped stocks until it grew. He also attracted investors along the way. The premise is simple: Never overpay and focus on the business rather than price fluctuations.

🔍 "Investing is most intelligent when it is most businesslike." - Benjamin Graham.

📊 Historical data suggests value stocks outperform in rising interest rate environments.

£50,000 invested for 30 years with a 10% return per year = £872k £50,000 invested for 30 years with a 20% return per year = £11.8mn It's probably worth the extra time it takes to dig out a few dirt-cheap stocks every few months...

A ‘healthy business’ doesn’t mean perfect profits and growing earnings. It just means it probably won’t close in the next 5-10 years. That’s all you need if you’ve bought the stock at a bargain price.

🔍 Intrinsic value is the cornerstone of investing. Only buy stocks significantly below their actual worth to ensure a margin of safety.

Avoid businesses with excessive goodwill and intangible assets.

Use an average FCF from the past 5-10 years for conservative earnings estimates and additional margin of safety.

Remember, investing isn’t gambling; it’s about buying things for less than they’re worth.

An attractive earnings valuation can offer significant upside but avoid predicting the future.