How I Analyze Net-Nets: Stocks Trading at Deep Discounts
by Jeroen Bos
The famous investment firm Tweedy, Browne once put together an interesting publication that brought together numerous studies conducted around the world into a survey of what investing approaches have worked best over different time frames.
The publication is called “What Has Worked in Investing” (www.tweedy.com/resources/library_docs/papers/WhatHasWorkedFundVersionWeb.pdf), and it found that value investing tends to consistently outperform other investing styles, especially in the long term.
Tweedy, Browne went further and broke these studies down into five categories, making it easy to look for specific value strategies that have worked the best.
The five main categories were:
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