Investing Guru, Francis Chou Video Presentaion

Chou Funds averaged 14.4% compounded for 15 years. Francis explains how he uses Ben Graham's net net working capital to find bargains.

Francis Chou Presentation

"Net Net Working Capital

One of the analytical tools I find most helpful in searching for these deep values is a methodology called Net Net Working Capital (NNWC). Think of NNWC as your machete for efficiently whacking through the micro-cap jungle. This is a Benjamin Graham-style concept that values a company based on the liquid components of working capital, net of all liabilities. Specifically, the NNWC formula is:

NNWC = (Cash & Investments * 100%) + (Accounts Receivable * 75%) + (Inventory * 50%) – Total Liabilities " -Stock Article Link