CI Market Dashboard

We have put together a collection of market indicators and track them to help you gauge the direction of the market.


CI Analysis Worksheets

Interactive analysis templates covering DuPont analysis (return on equity), valuing stocks the Warren Buffett way, and more to come.


CI Blog Feed

Market Rebound Generates New Bullish Dashboard Signal
posted 11 hours ago by Wayne Thorp

Bullish Sentiment Lowest in a Year
posted 3 days ago by Wayne Thorp

Mt. Gox Likely to Begin Liquidation Process
posted 4 days ago by Wayne Thorp

Intel’s Profit Declines Again Yet Shares Rise–What’s In Store for PCs?
posted 5 days ago by Joe Lan

Today Only: Google Glass for Sale
posted 5 days ago by Wayne Thorp



Computerized Investing > February 2010

Benjamin Graham's Net Current Asset Value Approach

PRINT | | | | COMMENTS (3) | A A   Reset

by Wayne A. Thorp, CFA

Outside of Warren Buffett, perhaps no other investor is as well-known as his mentor Benjamin Graham. Considered by most to be the father of value investing and often credited as the creator of the stock analyst profession, Graham’s value-oriented investing methodologies have been the topic of countless articles and academic studies. In fact, AAII tracks three different Graham methodologies at the Stock Screens area of AAII.com. However, his original stock selection approach has not garnered the same attention as his later concepts.

Graham developed and tested the net current asset value (NCAV) approach between 1930 and 1932. According to private investing firm Tweedy, Browne Company: “The net current asset value approach is the oldest approach to investment in groups of securities with common selection characteristics of which we are aware.” Graham reported that the average return, over a 30-year period, on diversified portfolios of net current asset stocks was about 20%. An outside study showed that from 1970 to 1983, an investor could have earned an average return of 29.4% by purchasing stocks that fulfilled Graham’s requirement and holding them for one year.

...To continue reading this article you must be a Computerized Investing Subscriber.

Gain exclusive access to this article and all of the benefits and investment education a Computerized Investing subscription offers.

SUBSCRIBE TODAY for just $24.
Log in
Already a CI subscriber? Login to read the rest of this article.

Subscribe
A subscription to Computerized Investing includes a monthly email and access to the CI Website, all of which aim to benefit your investing skills with respect to computers and the Internet.