This is basically cigar butt investing for the private market, as I doubt the most stable recurring revenue type businesses they seek to own are available at a low enough price to make it work for them.
The approach was made famous by Benjamin Graham and used by Warren Buffet in the first phase of his investing life.
Nowadays it's harder to find "net nets" as everybody and his dog can run a screen to find those companies now, so they get bid up above their net cash position most of the time.