How to value companies that own lots of assets

For some asset-rich companies, it's not necessarily their earnings that makes them attractive investments, says Tim Bennett. Here, he explains the best way to work out how much you should pay for them.

There are millions of companies in the world. And they all do different things. But as an investor, you can break each and every one of them up into three basic components.

Let's take a very simple example. Say a friend approached you, and asked you to invest in his carpet shop. What would you look at?

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.