Friday Morning Coffee Nr. 74: Intangibles & Value Investing

260919 Friday Morning Coffee

Friday Morning Coffee Nr. 74: Intangibles & Value Investing

One argument we hear quite often on why value investing would be no longer relevant is the growing importance of intangible assets in today’s businesses. When Benjamin Graham, the father of value investing, initially applied his investment principles he looked at the liquidation value of a business. He evaluated, based on the accounting figures, how much cash would be left for him as a shareholder if the tangible assets of a business would be sold and all the debt paid down. If that liquidation value was significantly higher than the current stock price, he invested.