Why I am not buying FRM, page-35

Valuing FRM at NTA does not make sense.

If an entity only has cash it can earn 2% (say) on its market value in the bank currently.

FRM currently earns about 10% return on its market value.

The difference comes from risk premium, value added to the assets and everything else the business does. This implies FRM is worth significantly more than NTA. That assumes growth doesn't go backwards.

NTA is what you might get if the company was liquidated tomorrow and it is a pretty good back stop in this case. Otherwise it gives absolutely zero value to the going concern, which is the part we should be interested in and trying to value.