Superinvestor (3) Francis Chou
Francis Chou, his story and his approach 1979, Francis came along a copy of The Intelligent Investor by Benjamin Graham. Once he read it, he was sold into the world of value-investing and hunted for articles and other books on the subject. What he found out after a while is, to be successful in investing you need a good basic framework on making investing decisions. One of his pillars in his framework is to buy on discount and by that, beat the market - that is the easy part - especially when he started. One way to find bargains are Graham's Net-Net Working Capital , which is Current Assets minus Current Liabilities and all long-term Liabilities as well, including preferred shares ! In the year of 1991, they were plenty of those! And it worked out for him! (---I just ran a screen on companies with a market cap > $250 million on the 3 major US exchange excluding financial companies and I got that 0.4% or 11 companies out of around 4000 companies were Nets...