One of the great things about investing is that there are lots of different ways for people to try and make money. This means that there is a style out there that will suit most temperaments. Probably the most well known investing strategy is value investing. Yet I find that this term is frequently overused […]
Month: January 2017
If you want to beat the stock market own fewer shares not more
As a private investor managing your own share portfolio you have to achieve two things over the long haul to consider your efforts a success. First and foremost you have to make money. This means doing better than if you had put your money in a savings account. The second thing you need to try […]
Sector Watch: Beverages
Companies which make and sell branded drinks have long been popular with investors. One of the main reasons for this is that as businesses they are very easy to understand. They sell products which millions of people consume daily and are very familiar with. Let’s take a quick tour around the UK quoted beverages sector […]
Sector Watch: FTSE 100 and AIM 100 Miners
Mining companies are very difficult to analyse. Their profits and cash flows are very closely related to trends in commodity prices and sentiment towards the economy in general which means that they tend to be very volatile. Unsurprisingly, share prices move and up and down a lot too. From an investor viewpoint, the inherent volatility […]
Paying up for quality shares – how much is too much?
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett “The desirability of a business with outstanding economic characteristics can be ruined by the price you pay for it. The opposite is not true.” – Charlie Munger The quote from Warren Buffett above is often cited […]
A great year for modified magic formula investing
A year ago I started a trial of three model portfolios based on Joel Greenblatt’s magic formula approach (click here to read more about this). I wanted to see how this strategy would work in the real world and with all investing costs taken into account as many studies of investment strategies ignore costs. The portfolios are […]