When the father of value investing, Ben Graham, formalised his approach with David Dodd in the now legendary book ‘Security Analysis’ in 1934, he made clear his goal of buying stocks at a discount to their net current assets (ie cash and other assets which can be turned into cash within one year, such as accounts receivable and inventory, less all liabilities). In advocating this famous Net/Net approach to stock investing, Graham was attaching little or no value to any long-term tangible assets that a firm might possess. For many who studied and ultimately followed Graham, the extreme conservatism of…

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