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This doesn't happen any more. Back then you could find companies with a cap that was LESS than the money they had in the bank. Those were no brainer deals. Thi

This doesn't happen any more. Back then you could find companies with a cap that was LESS than the money they had in the bank. Those were no brainer deals. This strategy was actually pioneered by buffets mentor Benjamín graham. By just blindly following a formula you would do value investing by calculating NAV vs market cap. Buffet took it one step further. He calculates another type of value called intrinsic value and that relies on other factors rather not just the ratio of assets to cap. Part of it relies on consistency of revenue, growth and qualitative aspects of the business as well.

eru 3y ago
> This doesn't happen any more. Back then you could find companies with a cap that was LESS than the money they had in the bank. Those were no brainer deals. For a while, Yahoo was famously worth less than its stake in Alibaba. But it was also not clear whether shareholders could get management out of the way to stop destroying value.
ac29 3y ago
> This doesn't happen any more. Back then you could find companies with a cap that was LESS than the money they had in the bank. Those were no brainer deals. Plenty of companies trade at a discount to book value. I found over a thousand with a stock screener.