Net-Net Stocks: A Timeless Strategy – For Small Investors

'Net-Net' Stocks: A Timeless Value Strategy – But Pickings Are Slim by Norman Rothery, The Globe And Mail

In the evenings, I enjoyed perusing Victor J. Wendl’s bookThe Net Current Asset Value Approach to Stock Investing: A Guide to Purchasing Stocks Trading below Liquidation Value. Mr. Wendl works as a fee-only adviser in St. Louis, Mo., and the book focuses on a strategy first suggested by famous money manager Benjamin Graham in the 1930s.

Near the depths of the Great Depression, Mr. Graham wrote a series of articles that highlighted businesses that could be snapped up for less than their liquidation value. The outlook was so bleak for these firms that the...