NCAV - Ceta Research

Graham Net-Net CAGR by exchange vs local benchmarks. Japan +3.3% vs Nikkei, Canada +4.4% vs TSX, Hong Kong -6.6% vs Hang Seng.

value investing

Graham Net-Net on 7 Global Markets: One Works, Two Are Cautionary Tales

We ran Graham's net-net strategy on 7 global markets over 24 years with local benchmarks. Japan beat the Nikkei by +3.3% per year. Hong Kong lost 86% peak-to-trough. India badly trailed the Sensex. Here's the full cross-market comparison.

Growth of $10,000 invested in Graham Net-Net Japan vs Nikkei 225 from 2006 to 2024. Net-Net outperforms by +3.3% annually.

value investing

Japan Is the Last Net-Net Hunting Ground: +3.3% Alpha vs Nikkei Over 19 Active Years

We backtested Graham's net-net strategy on Japan's JPX exchange from 2006 to 2024. Japan net-nets returned 7.65% CAGR vs 4.32% for the Nikkei 225, a +3.3% annual excess with 40% down capture. Japan is the one major developed market where the net-net premium still shows up in the data.

Growth of $10,000 invested in Graham Net-Net Hong Kong (HKSE) vs S&P 500 from 2001 to 2024.

NCAV

Graham Net-Nets in Hong Kong: How a Liquidation Strategy Lost Money for 24 Years

We backtested Graham net-net stocks on the Hong Kong Stock Exchange from 2001 to 2024. The strategy returned -3.17% annually with an -82% max drawdown. Pre-2015 it worked. Post-2015 it collapsed alongside Hong Kong's structural market decline.

Growth of $10,000 invested in Graham Net-Net Korea (KSC) vs S&P 500 from 2001 to 2024.

NCAV

Graham Net-Nets in Korea: The Steadiest NCAV Market We Tested

NCAV screen on Korean stocks from 2001 to 2024. 6.60% CAGR with only 22% volatility. Max drawdown -39.3%, lower than SPY. The Korea discount creates a reliable universe of balance sheet bargains.

Growth of $10,000 invested in Graham Net-Net India (NSE) vs S&P 500 from 2001 to 2024.

NCAV

Graham Net-Nets on the NSE: Boom-Bust Deep Value in India

NCAV screen on Indian stocks from 2001 to 2024. 8.28% CAGR with 42% volatility. Recovery years hit +133%, +106%, and +81%. The trade-off is a -57.7% max drawdown.

Growth of $10,000 invested in Graham Net-Net Taiwan (TAI) vs TAIEX from 2001 to 2024.

NCAV

Graham Net-Nets in Taiwan: 9.48% CAGR vs TAIEX 5.72%

We backtested Graham net-net stocks on Taiwan exchanges from 2001 to 2024. The strategy returned 9.75% CAGR with a Sortino of 0.888, only 12.5% negative periods, and 39% down capture. Taiwan's small manufacturer ecosystem creates ideal conditions for net-net investing.

NCAV

Graham Net-Net Strategy: 8 Exchanges, 3 Deliver Alpha vs Local Benchmarks

We backtested Benjamin Graham's NCAV strategy across 8 global exchanges from 2001 to 2024. Japan delivered the best risk-adjusted returns (0.416 Sharpe, 47% down capture). Taiwan posted the highest CAGR at 9.75%. The other six markets trailed the S&P 500, with the US, UK, and Hong Kong showing...

Growth of $10,000 invested in Graham Net-Net UK (LSE) vs S&P 500 from 2001 to 2024.

NCAV

Graham Net-Nets on UK Stocks: The Academic Premium That Disappeared

Xiao and Arnold (2008) found 19.7% annual returns for UK net-nets from 1980-2005. Our 2001-2024 backtest finds -0.62% CAGR. Two spectacular recovery years (+99% in 2009, +66% in 2020) couldn't offset persistent losses in normal markets.

NCAV

NCAV in Japan: Where Balance Sheets Still Set the Floor

We ran the NCAV screen on Japan from 2007 to 2024. CAGR of 8.85% matched SPY with lower drawdown (-33.7% vs -40.3%) and a Sortino of 1.167. Japan's cash-heavy balance sheets make NCAV a better predictor of liquidation value than in any other developed market.

Growth of $10,000 invested in Graham Net-Net Canada (TSX) vs TSX Composite from 2001 to 2024.

NCAV

Graham Net-Nets on the TSX: +6.55% Annual Alpha vs Canadian Benchmark

NCAV screen on Canadian stocks from 2001 to 2024. 7.49% CAGR. The only exchange with zero cash years out of 24. Resource-heavy TSX produces net-nets every year, but the ride includes a -55.9% max drawdown.

NCAV

NCAV: What the Balance Sheet Actually Tells You About Liquidation Value

We computed NCAV for every US stock from 2001 to 2024 and bought the ones trading below liquidation value. CAGR was 5.02% vs 8.84% for SPY. The real finding is what NCAV reveals as a balance sheet tool, which current assets matter, and why the formula uses them instead of total assets.

Growth of $10,000 invested in Graham Net-Net US stocks vs S&P 500 from 2001 to 2024. Net-Net grew to $32K, S&P 500 to $77K. MOC execution model.

value investing

Graham Net-Net on US Stocks: 25 Years of Data Shows the Premium Has Eroded

We backtested Graham's net-net strategy on all US exchanges (NYSE, NASDAQ, AMEX) from 2001 to 2024. The result is 4.97% CAGR vs 8.86% for the S&P 500. The premium that Oppenheimer documented in 1986 has largely disappeared. Here's what the data shows.