I'm way overweight equities and am looking for quality companies trading at
significant discounts to their net asset values.
As I was looking around the investing universe for possible underpriced securities over the past couple of months I happened upon a number of closed - end funds trading at
significant discounts to net asset value (NAV).
Not exact matches
However, the ETF swung from a
significant discount relative
to its stated
net asset value to a premium during this period.
Closed - end funds differ from ETFs in that they can trade at
significant discounts or premiums
to the
net asset value, whereas ETFs will veer away from their
net asset value only temporarily and mildly.
Further research by Tweedy, Browne has indicated that companies satisfying the
net current
asset criterion have not only enjoyed superior common stock performance over time but also often have been priced at
significant discounts to «real world» estimates of the specific
value that stockholders would probably receive in an actual sale or liquidation of the entire corporation.
«REIT shares overall are still trading at a
significant discount compared
to net asset value,» Grueber says.