I know at least some of you have an interest in joining the Value Investors Club, because readers have periodically asked for my advice on how to join. I’m not a member, nor have I ever applied, but that doesn’t mean I can’t help!
Frequent commenter “aagold” informed me that he was accepted into the club yesterday, thanks to this write-up. Potential candidates should check it out! Even for those not interested in joining the club, however, the write-up may still offer you a potential buying opportunity for your own portfolio.
Myself, I don’t love this particular idea. Frequenters of this blog know that I don’t love valuations that rely heavily on commodity price assumptions (which aagold calls an irrational position). Price assumptions aside, I have even less confidence in the liquidation value estimate of the company considering some of the cost of liquidation assumptions.
But, who am I to judge? Only you can judge what makes sense for your portfolio, and obviously the idea is well-liked by the people at VIC (no surprise there, as the grass is always Greenblatt on the other side). So check it out for yourself.
Disclosure: No position
