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18-09-2013, 03:39 PM
Hi all,
Just wanted an opinion on how important NAV is, relative to your investment strategy or guideline.
Philip Fisher mention that NAV gives a safety margin, that's it.
It does not have a bearing of how the stock will perform in the future.
A safety margin will not help if the company is in chaos.(the safety margin will get eroded and if the company does not get liquidated in the short term, that still means nothing)
He mooted that management is more important than NAV, and that goood management is what will bring value to the business.
I am contemplating this as I believe there is truth here.
Just wanted an opinion on how important NAV is, relative to your investment strategy or guideline.
Philip Fisher mention that NAV gives a safety margin, that's it.
It does not have a bearing of how the stock will perform in the future.
A safety margin will not help if the company is in chaos.(the safety margin will get eroded and if the company does not get liquidated in the short term, that still means nothing)
He mooted that management is more important than NAV, and that goood management is what will bring value to the business.
I am contemplating this as I believe there is truth here.