Classic value investing has got a drubbing in the post-2008 world. This year, it has made a comeback. However, not many believe that it will live up to its past glory. Most value chasers have become quality investors, who are now happy paying for good fundamentals at any price.
When S Naren saw the annual report of Laxmi Machine Works, a company involved in manufacturing of textile machinery, he noticed that its market capitalisation was equal to the cash available on the balance sheet. The company had an order book for five years. It made huge cash profits, but was somehow ignored by the market. Naren bought the stock. The year was 1989, and according to him, it was the first equity stock he had purchased. The stock
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