Net-Net Investing

Net-Net investing is a strategy where investors buy stocks that are trading for less than the company's net asset value (NAV), specifically less than its current assets minus total liabilities. Essentially, they look for companies that are undervalued relative to the net value of what they own. This approach aims to find bargains where the market price is lower than the company's liquid assets, providing a margin of safety. By purchasing these stocks, investors hope the market will recognize the true value over time, leading to potential gains while minimizing downside risk.