... The newly published second editionis much more than a refresher; it has 6 additional case studies and walks us through what happened to the old ones in the past 5 years. The case studies are still organised in 3 groups: deep value successes, deep value failures, and deep value shares of tomorrow (Enteq Upstream, Hargreaves Services, Lamprell, Hydrogen Group, Record). The latter group can be found in the author’s fund.
... While reading the book it becomes obvious why deep value investing works over time – it’s simple but not easy! There are inevitably big failures (4 case studies); you need loads of patience and perseverance. Also, some of the net-nets are very thinly trade and not always available through a generalist broker. Quality Investing is so much more comfortable…
... Conclusion: there is a lot of value in Deep Value Investing, especially today after a period of underperformance. If you cannot implement the strategy yourself, delegate to a capable manager.
