Deep Value Investing: Finding bargain shares with BIG potential

by Jeroen Bos

Overview

UPDATED & EXTENDED 2ND EDITION - with a brand-new foreword by Merryn Somerset Webb

Let the market come to you

Deep Value Investing by Jeroen Bos is an incredibly candid and revealing guide to the secrets of deep value investment. Written by an investor with a long and remarkable track record, it shares for the first time the ins and outs of finding high-potential undervalued stocks before anyone else.

Deep value investing means finding companies that are genuine bargains that can pay back phenomenally over the long term. They are firms so cheap that even if they were to close tomorrow their assets would pay you out at a profit. But if they can turn things around, the rewards will be many times greater ...

These were the favourite shares of Benjamin Graham, author of The Intelligent Investor. Inspired by Graham's classic and with a long history of discovering these great value stocks - sometimes known as 'bargain issues' or 'netnets' - author and investor Jeroen Bos reveals:

- how to use only publicly available information to discover these shares and filter the gold from the dross

- everything he did when analysing, purchasing, monitoring and selling more than ten recent successful deep value investments

- the complete philosophy behind deep value investing, and the ins and outs of this strategy in practice

- what can go wrong and how to minimise the chances of it happening to you.

Deep value investing has a better track record than almost any other approach to the market. Even better, it doesn't require minute and technical knowledge of a company, nor is it fixated on earnings or often-unreliable future projections.

It's all about the balance sheet and patience. This makes it the perfect investing approach for those who want to see phenomenal stock market returns without wasting time or commission costs.

Product Details

ISBN-13:	9780857196613
Publisher:	Harriman House
Publication date:	01/15/2018
Edition description:	Expanded
Pages:	275
Product dimensions:	6.10(w) x 9.10(h) x 0.70(d)

About the Author

Dutch investor Jeroen Bos has lived in England since 1978. He has a diploma in Economics from Sussex University and has worked his entire career in the financial services industry, mainly in the City of London. He worked for many years at Panmure Gordon & Co, the stockbroker, and it was here that his interest in value investing developed. This process accelerated after the October 1987 stock market crash, during which time he took inspiration from The Intelligent Investor by Benjamin Graham.

At the end of 2003 Jeroen joined Church House Investment Management to manage CH Deep Value (Bahamas), which in March 2012 became the CH Deep Value Investments Fund.

He lives in Sussex, is married and has three sons.

Table of Contents

About the Author vi

Foreword to the 2nd Edition Merryn Somerset Webb vii

Foreword to the 1 st Edition Michael van Biema xi

Preface to the 2nd Edition xv

Preface to the 1 st Edition xix

Introduction: Being a Deep Value Investor 1

What you can get out of this book 3

Finding friendless companies 4

Teaming up with a super investor 5

A sweet pick 6

Part I The Deep Value Philosophy 9

Chapter 1 Deep Value Investing 11

A neglected method 13

Bargain issues: true deep value 14

Benjamin Graham and bargain issues 16

Chapter 2 How Deep Value Investing Works 19

Just the facts 21

Assets not earnings 22

Cyclical services shares 23

Holding on for the ride 25

The rest of the book 26

Part II Deep Value Successes 29

Chapter 3 Spring Group 31

Company background 33

Investment case 33

Outcome 36

Chapter 4 Moss Bros 39

Company background 41

Investment case 42

Outcome 43

Chapter 5 ArmorGroup International 47

Company background 49

Investment case 50

Outcome 53

Chapter 6 Morson Group 57

Company background 59

Investment case 59

Outcome 63

Chapter 7 Harvard International 65

Company background 68

Investment case 68

Outcome 69

Chapter 8 Velosi 73

Company background 75

Investment case 76

Outcome 79

Chapter 9 Bloomsbury Publishing 83

Company background 85

Investment case 87

Outcome 89

Chapter 10 B.P. Marsh & Partners 91

Company background 93

Investment case 94

Outcome 97

The return of an investment case 98

Chapter 11 Barratt Developments 101

Company background 103

Non-investment case 104

The waiting game 107

Investment case 109

Outcome 112

Chapter 12 MJ Gleeson 115

Company background 117

Investment case 118

Outcome 120

Chapter 13 Panmure Gordon & Co 125

Company background 127

Investment case 129

Outcome 132

Chapter 14 Sanshin Electronics 135

Country background 137

Company background 139

Investment case 139

Outcome 142

Part III Deep Value Failures 145

Chapter 15 RAB Capital 147

Company background 149

Investment case 151

Outcome 154

Chapter 16 Abbeycrest 157

Company background 160

Investment case 160

Outcome 161

Chapter 17 French Connection 167

Company background 169

Investment case 169

Outcome 173

A work in progress 175

Chapter 18 Norcon 179

Company background 181

Investment case 182

Outcome 185

Part IV Deep Value Shares of Tomorrow 191

Chapter 19 Enteq Upstream 193

Company background 195

Investment case 197

Outcome 198

Chapter 20 Hargreaves Services 205

Company background 207

Investment case 207

Outcome 211

Chapter 21 Lamprell 213

Company background 215

Investment case 216

Outcome 218

Chapter 22 Hydrogen Group 221

Company background 223

Investment case 225

Outcome 227

Chapter 23 Record 229

Company background 231

Investment case 233

A changing model 235

Outcome 236

Epilogue 239

Acknowledgements 241

Editorial Reviews

"Deep Value investing is not for the faint hearted but Jeroen Bos is an expert practicioner. His book is clear, engaging and practical. It shines an expert light on this lucrative and little known investment niche. Frankly, as a fellow deep value investor looking for undiscovered bargains, I wish he hadn't done quite such a good job of it."
—Andrew Williamson, Hawkwood Capital LLP

"With the publication of Deep Value Investing, J Bos has joined a very select group made up of investors turned authors turned teachers. Deep Value investing is not your average book about value investing. No generalities here, no theories, no big words. But facts, very clear principles and how to implement them example after example. This book has not been written to entertain the reader nor to make him dream about becoming rich through using some abstruse formulae or techniques. Everything in this book is easy to understand, down to earth and replicable. But at a cost: one has to work and work hard in order to put to good use Jeroen Bos' manual. One has to go after the raw materials of financial accounts and statements and dig underneath in order to, on rare occasions, be fortunate enough to pick the deeply undervalued investment opportunities. The Intelligent Investor by Benjamin Graham remains a reference in the field, but the required reading list for value investors is now one title longer since J Bos' Deep Value Investing publication." —David Pastel, Chairman and CEO, Pastel & Associés, Paris

If you want to know how to make money by buying cheap companies, this book is a must." - Philip Best, Argos Investment Managers

"Very well written, easy to understand and jargon free...the book probably will help in making you a better investor, and on that basis it is definitely worth an addition to any serious investor's library." - Richard Gill, T1ps

"Deep Value Investing – Finding Bargain Shares with Big Potential is a well-written, hands-on book about how to extract value from investments made from a niche in the stock market. It is many years ago that Benjamin Graham came up with the thesis of buying net current asset stocks, or net-net stocks, which is to suppose that it is old fashioned and not to be done in today’s transparent markets. Jeroen Bos demonstrates that this is far from the truth. By writing a book, containing many real life examples Jeroen proves that by hard detailed work coupled with discipline it is still a vital strategy to apply today. By using examples, Jeroen not only gives the reader a better understanding of how to do this kind of low risk investing but also directly shows what to look for in identifying these net-net investments." - Ole Nielsen, Nielsen Capital Management

“Mr Bos has written a practical and very readable book that should appeal to those who are looking to learn more about this very particular style of investing. The examples are neatly interwoven with the lessons he has learnt over the years and the qualities required of a deep value investor.” —FT Adviser's Book of the Year 2013

“I recommend it.” —Richard Beddard, Interactive Investor

“...there is a lot of value in Deep Value Investing, especially today afer a period of underperformance.” —Michael Wassermann, Strictly Value

“The message from this book is that you can keep investing simple, and may be most importantly, you do not have to be a City insider, or just plain lucky.” —Zak Mir, Zaks Traders Cafe

From the Publisher