CIGAR BUTT INVESTING
фин. What Is “Cigar Butt” Investing?
If you buy a stock at a sufficiently low price, there will usually be some hiccup in the fortunes of the business that gives you a chance to unload at a decent profit, even though the long-term performance of the business may be terrible. I call this the "cigar butt" approach to investing. A cigar butt found on the street that has only one puff left in it may not offer much of a smoke, but the "bargain purchase" will make that puff all profit.
, I was buying stocks under net current asset value, sometimes
under cash value, what Warren Buffett calls "cigar butt investing
He classifies this later type in the manor of “cigar butt” investing – finding a
cigar butt (paying nothing) and getting the last puff (profit) for free.