18 April 2014
By Maynard Paton
I always like to buy valuable assets at a steep discount. Today I’m delighted to showcase how I spotted one such investment, Mountview Estates (LON: MTVW), back in 2011 — and how it has since delivered very handsome gains.
At the time of my purchase, I calculated the potential value of Mountview’s balance sheet could have been more than twice its then market cap.
The shares have subsequently rallied 70% as the valuation discount narrowed and the underliying business performed well.
Add in conservative leadership and a terrific dividend history, and I’m convinced this sturdy £273m small-cap can continue to provide me with dependable, long-term returns.