The conservative net asset value strategy is a value investing strategy developed by BIGfatpurse. The CNAV accounts for the full value of cash and properties, and half the value for equipment, receivables, investments, inventories and intangibles. As the name suggest, the CNAV is a more conservative strategy and thus is lower than the NAV (net asset value). For the calculations, different percentage allocations of certain asset categoires which are more important than others are weighed more. By differentiating lesser value asset categories are you taking a more conservative stance to computing NAV. As a general rule of thumb, the lower your buying price relatie to the CNAV, the better it is. Some investors find the CNAV method useful and practical however, it ultimately depends on what stocks you are assessing. It is a good strategy to include when making a purchase in addition to other methods.
The conservative net asset value strategy is a value investing strategy developed by BIGfatpurse. The CNAV accounts for the full value of cash and properties, and half the value for equipment, receivables, investments, inventories and intangibles. As the name suggest, the CNAV is a more conservative strategy and thus is lower than the NAV (net asset value). For the calculations, different percentage allocations of certain asset categoires which are more important than others are weighed more. By differentiating lesser value asset categories are you taking a more conservative stance to computing NAV. As a general rule of thumb, the lower your buying price relatie to the CNAV, the better it is. Some investors find the CNAV method useful and practical however, it ultimately depends on what stocks you are assessing. It is a good strategy to include when making a purchase in addition to other methods.