I always considered it closer to altrusitic selfishness, which would be consistent with much of Rand-ian thought. It's an inherently selfish system, since it sees no reason to be "moral" in a traditional sense, but oftentimes acting kind toward others is a "net profit" for the person in the form of some received benefit (friendship, money, accolades, etc.), so that it remains what is best for the individual, but often coincides with what is best for the group. And bad actions (stealing, killing, etc.) generally end negatively for the person.
Seen this way, if you found a group of people living this way, they'd probably be able to live fairly harmoniously. Though the sense of genuine altruism would be stripped from it, which is why it doesn't appeal to most.