As Benjamin Graham, the father of value investing used to advocate, a good investment should have a margin for safety. That's exactly what's on offer with this investment company, which is trading at an all time discount to its net asset value (NAV).
Furthermore, the value of cash on the balance sheet backs up 89 per cent of the company's market capitalisation, meaning the investment portfolio is being thrown into the price at 88 per cent below book value. That's even though all bar one of its seven investee companies are listed on a major stock exchange. As the company's investment manager puts the cash to work, the huge share price discount to NAV should narrow markedly, assuming of course they invest wisely.
