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Main Topic: Negative book value companies and risk vs reward
This episode is split into two parts. The first part is an Ask JB segment where I respond to a fantastic question from listener Randy:
How could a company have a negative book value? Under what situation might it occur? Should we avoid owning stocks of those companies because of its negative book values?
I am not talking about small companies. Some of the very big companies such as Colgate-Palmolive (CL) or Philip Morris International (PM) have had negative book values for many years and they are still in business.
JB Says: To hear my response, you'll have to listen to the episode 🙂
The second part of the episode is a repeat of episode 13 about Risk versus Reward. You can find the show notes for episode 13 here.