tag:blogger.com,1999:blog-7294165939647321702.post3381960380894090230..comments2024-03-11T10:31:06.107-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: All Net-Nets Not Created EqualSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7294165939647321702.post-58788058747121962022008-12-11T05:12:00.000-05:002008-12-11T05:12:00.000-05:00Many many thanks...Kaushal.Many many thanks...<BR/><BR/>Kaushal.kashah9https://www.blogger.com/profile/06240657514849922771noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-3466623185007717672008-12-11T05:03:00.000-05:002008-12-11T05:03:00.000-05:00Hi,It sounds like there is quite a difference betw...Hi,<BR/><BR/>It sounds like there is quite a difference between Total Liabilities in the US and in India. The Total Liabilities I refer to includes current liabilities, and does not include shareholder equity (but would include any shareholder loans that might be owed to specific shareholders).Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-33740218377913735112008-12-11T04:52:00.000-05:002008-12-11T04:52:00.000-05:00Hi,Got that. Here in India, the line Total Liabili...Hi,<BR/><BR/>Got that. Here in India, the line Total Liabilities means Shareholders Funds + Total Debt. Usually Current Liabilities are not shown with Total Liabilities but are deducted from Current Assets. So, according to you (and as per Ben Graham) Total Liabilities means Shareholders Funds + Total Debt but excluding Current Liabilities. Sorry...but I'm trying to understand this properly...<BR/><BR/>Kaushal.kashah9https://www.blogger.com/profile/06240657514849922771noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-17905397595307978142008-12-11T04:19:00.000-05:002008-12-11T04:19:00.000-05:00Hi kashah9,Basically the line item on the most rec...Hi kashah9,<BR/><BR/>Basically the line item on the most recent balance sheet called "Total Liabilities". This is mostly comprised of what the company owes other parties.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-57559314480943425642008-12-11T03:56:00.000-05:002008-12-11T03:56:00.000-05:00BK,Hi. I have a basic question on NET-NETS. How do...BK,<BR/><BR/>Hi. I have a basic question on NET-NETS. How do you define Total Liabilities??<BR/><BR/>Kaushal.kashah9https://www.blogger.com/profile/06240657514849922771noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-51391362838262554512008-12-02T09:01:00.000-05:002008-12-02T09:01:00.000-05:00Hi,You are writing nice articles in this blog. I a...Hi,<BR/><BR/>You are writing nice articles in this blog. I am regularly reading your articles. I want to add below comments on Net Nets<BR/><BR/>Net Net is just a screening method. Graham gave fantastic example in terms of American Laundry Machine. As per the example Liabilities should be taken 100 % basis. (Since it can be understated I feel it should be taken 120% basis).Inventory should be taken as 60% basis. Accounts receivable should be taken as 85 % Basis.<BR/>This again depends on Industry. Cigarette Manufacturer’s Inventory can be taken as 100% Basis. <BR/><BR/>I also feel that most of the stocks you will see in Net Net is a Capital Heavy Companies. If you Screen the stocks by Net Net then filter the stocks based on their corresponding discounts (Inventory etc) and then remove all capital heavy companies ,You will end up with bargains.<BR/><BR/>Regards<BR/>VishnuVISHNUhttps://www.blogger.com/profile/15397730676763694463noreply@blogger.com