For a year now, Richard has been scrutinising companies and awarding them ‘strikes’ for complications that make them tricky to analyse and potentially unpredictable as investments. Now he’s combed the entire market, he reveals all the shares that didn’t strike out. It’s a year since I started the 5 Strikes project, which means I have […]
Category: Strategy
How I use SharePad to research companies
Phil shows how he uses SharePad to research companies and shares. I have been using SharePad since it was launched in 2015 and helped to develop many of the features that are in it today. It remains a great resource for private investors and I find it invaluable when researching investments for my own portfolio […]
Two companies pass first hurdle
IntegraFin and Shoe Zone are the only companies to achieve less than three strikes as the winter lull in annual reporting intensifies. Richard also takes a closer look at Renew. 5 Strikes Since my last 5 Strikes update, I have only found two shares that achieve less than three strikes. A strike is a complicating […]
Is it time to ditch ROCE as a measure of company performance?
Phil looks at the issues with one of the most important ratios in investing and argues the case for a cleaner and more realistic alternative. Return on investment or return on capital employed (ROCE) as it is commonly referred to is seen as one of the best measures of a company’s financial performance. It is […]
Know Your Breakaway Gaps – Tactics to Get Onboard Monster Trends
Breakaway gaps, otherwise known as pro gaps, can signify a major change in sentiment and the start of a new primary trend. In this article I will show you how to find pro gaps and more importantly show you some money management tactics to help you get on board a potential new trend in a […]
Eight Common Investing Mistakes Made by Private Investors
“Investing success is two-thirds avoiding mistakes, one-third doing something right.”- Ken Fisher Private investing offers the opportunity for individuals to take control of their finances and even achieve financial freedom. However, without proper knowledge and preparation, private investors can unknowingly make mistakes that hinder their portfolio investment returns. Of course, because we are human, it […]
Latest fish caught in the net
Richard introduces the latest fish caught in his 5 Strikes net. The seven shares include a giant caterer, a software supplier with a perfect track record, and a travel agent that makes “jollies even jollier”. Post-Christmas, there is a bit of a lull in the annual reporting season. That is because a large number of […]
Why good companies underperform
In my previous article, I discussed the reasons for investing in good companies and how you can search for them in SharePad. We saw that investing in good companies can generate stellar returns for investors over time but being able to buy the shares of them at a reasonable price is often difficult. It is […]
How do YOU SharePad?
As we all know, there is a lot of functionality in SharePad and there are many different ways to use and customise it. Last year’s customer survey also showed us that the majority of you use SharePad every day. Inspired by this and some social posts from long-term subscribers who talked about their daily SharePad […]
When purpose means more profit
There are a rapidly growing number of certified B Corps organisations that combine purpose and profit. As yet, only a handful are listed, but Richard thinks we’re at the beginning of a trend. It may be a profitable one for investors. This year’s crop of Christmas gifts has rekindled my interest in investing in a […]
Searching for outstanding companies with SharePad
Investing in good companies is one way to grow the value of your portfolio. In this article, Phil takes you through his method of searching for outstanding British companies using SharePad. When I first started out in the investing world more than a quarter of a century ago, value investing was still very much in […]
My SharePad system
Having used the 5 Strikes system for nine months, Richard has decided it is a keeper. Commenting on the latest investment candidates to achieve less than 3 strikes, he explains what he was thinking while he was separating the wheat from the chaff. Happy New Year! At the turn of every year, I review my […]
How do YOU SharePad?
As we all know, there is a lot of functionality in SharePad and there are many different ways to use and customise it. Last year’s customer survey also showed us that the majority of you use SharePad every day. Inspired by this and some social posts from long-term subscribers who talked about their daily SharePad […]
The Stock Market Is Not All There Is
Keystone Law is top of Richard’s research list because it is unlike any other listed law firm. Not only has it performed better than the others, it has a different way of doing business. But how special is it? One of the many things that hinder my understanding of companies is a direct result of […]
Can you easily spot a takeover target?
Buying a share in a company in the hope that it might get taken over is a risky thing to do. There’s no guarantee that a buyer will ever emerge and you could end up losing money waiting for one to turn up. Phil takes a look at some prominent takeovers of 2023 and asks […]
How do YOU SharePad?
As we all know, there is a lot of functionality in SharePad and there are many different ways to use and customise it. Last year’s customer survey also showed us that the majority of you use SharePad every day. Inspired by this and some social posts from long-term subscribers who talked about their daily SharePad […]
Six new stock ideas
Six shares have passed the first stage of Richard’s 5 Strikes process. Many of them are destined for the “too hard pile”, perhaps the most underrated element in an investor’s toolkit. Here is an update on the latest companies to have published annual reports and passed the 5 Strikes system*. Since the last update four […]
Should private investors follow celebrity fund managers into Rightmove?
There’s no harm in using fund managers as a source for investment ideas but blindly copying them without doing your own research can be a costly mistake. Phil looks at the recent purchase of Rightmove shares by two well-known professional investors to see if private investors should consider buying in as well. Why copying others […]
How do YOU SharePad?
As we all know, there is a lot of functionality in SharePad and there are many different ways to use and customise it. Last year’s customer survey also showed us that the majority of you use SharePad every day. Inspired by this and some social posts from long-term subscribers who talked about their daily SharePad […]
Learning from failure: Listed law firms
Richard uses SharePad and Artificial Intelligence to help him learn about listed law firms. The legal sector is not quite the unappreciated stock market backwater he anticipated. It is a bit of a horror show, with a couple of light intermissions. It was the data that alerted me to the opportunity in listed law firms. […]
15 new stock ideas
It has been a month since Richard revealed the latest shares to pass his 5 Strikes system. The good news, some have passed with flying colours. 5 Strikes* is my main method of discovering new long-term investments, and since we share my discoveries here regularly, some readers will be familiar with it by now. If […]
Should investors use the Piotroski F-Score to pick shares?
In the second of his articles about stock-picking formulas, Phil takes a look at the Piotroski F-Score to see how useful it is at identifying winning shares. My previous article looked at the usefulness of The Magic Formula as an investing strategy in today’s stock markets. In this article, I am going to turn my […]
Hey big spender
The Capex to operating cash flow ratio can tell us a lot about a firm’s priorities. Richard explores the ratios of a number of capital-intensive businesses. For many years I have held shares in Goodwin, a family owned mini-conglomerate of engineering businesses. This gaggle of businesses is capital intensive, which means Goodwin has to invest […]
Time to move on from magic formula investing?
Joel Greenblatt’s simple stock-picking formula delivered great results in the past but may no longer be useful for today’s investing world. Phil takes a look at why this once popular stock screen now fails to consistently outperform the market. A brief overview of the magic formula The magic formula is the topic of Joel Greenblatt’s […]
All the zeros
Since Richard started scoring companies in SharePad last April, twelve companies have scored zero strikes, the best possible score. In this article, he decides which of them to research next. Five-strikes-wise, there is not much to report on. I have awarded four shares that have reported in the last two weeks with less than three […]
Are share buybacks good for investors? – a look at the evidence
Phil uses SharePad to examine the impact of share buybacks on shareholder returns. Do they make shareholders better off and should investors focus on growing companies instead? Do share buybacks really make shareholders better off? Should they prefer dividends instead? Opinion is divided on this subject. The great thing about a dividend from an investor’s […]
Is it a good time to buy housebuilder shares?
House building in the UK has experienced numerous peaks and troughs with shareholders in listed housebuilders experiencing similar fortunes. Buying housebuilder shares when they are unpopular has made investors plenty of money in the past, but is now a good time to invest? Phil takes a look at the sector through SharePad in an attempt […]
Behind the Dip: Unravelling Stock Price Drops and Crafting Winning Strategies
Alpesh Patel OBE looks at the causes and potential strategies when a stock that has risen significantly experiences a sudden drop. When a stock that has risen significantly experiences a sudden drop, it can cause concern for many investors. This situation is common in the stock market, and it’s crucial to understand the reasons behind […]
29 top scorers, and Christie bottled
Richard reveals the latest shares to pass his 5 Strikes scoring system, and attempts to bottle the essence of Christie, a big data business back in 1846! It may be the height of summer, but I am still beavering away scoring shares as companies publish their annual reports. Two months of top-scoring shares To recap, […]
Bottling the essence of a business
An iron rule in long-term investing is to understand the business. Richard adapts business school teaching to work out how companies make money. One of the advantages private investors have over many fund managers is that we do not have to worry about being fired or losing out on bonuses just because we have not […]
Freaky Franchises
Richard finds 11 franchisors listed in London and pits them against each other in a championship to find the best one. In round one, a wildcard goes out to the number two seed. One of the first things I noticed when I started scoring companies in SharePad this spring was that franchises were scoring well. […]
The Trader: Pouring fuel on the fire of shorters
Michael talks shorting and specifically – using this weeks news story on Ocado as an example – when the shorters get squeezed. Let’s be honest. Everyone loves a short squeeze. Unless, of course, you’re the shorter being squeezed. Then it’s like being nailed to a chair that’s set on fire. But shorting is an active […]
How to find the best dividends on AIM
Share prices on London’s Alternative Investment Market (AIM) have come under huge pressure over the past 18 months. But dividends from AIM stocks actually hit a record high in 2022. So what do these mixed signals really mean, and where can you find the best dividends on AIM? I am going to start this article […]
The Naked Trader: A Dash for Cash Strategy
To celebrate the launch of his new book next month Robbie Burns AKA The Naked Trader delivers a special guest article on one of his favourite strategies. Plus details of a new SharePad filter so you can try the strategy yourself. There are loads of strategies to suit most traders/investors, except those of you who […]
15 more top-scoring shares
As the number of new annual reports dwindles from a flood to a trickle, Richard examines another cut of shares that he scores highly. It is leading him to think the unthinkable. The springtime flood of annual reports has abated, so this article probably contains the last big cut of shares that, after scrutinising the […]
Market Moves 29/05/23: Shares on the move | Trending sectors | Results to look out for
In this week’s Market Moves, Ben takes a look at some of the biggest winners and sector trends over the past week, including a dramatic price surge in the US tech sector (and encouraging moves in UK tech shares) plus a look-ahead to a quieter week of financial results and updates. Semiconductor specialist Alphawave IP (now Alphawave […]
How to avoid investment mistakes: Part 3 – Company problems
In the third part of this series about avoiding investment mistakes, Ben looks at some of the reasons why companies disappoint investors – and the red flags that can help you avoid them. When it comes to navigating your way through the stock market, there are plenty of factors that can lead you astray. Psychology […]
Investing in the Future: A Look at Stocks in Artificial Intelligence
In today’s fast-paced world, artificial intelligence has emerged as a disruptive technology with the potential to transform various industries. Investors seeking exposure to this exciting field may consider investing in stocks that specialise in AI solutions. In this blog post, we explore the world of artificial intelligence and highlight some of the best AI stocks […]
Market Moves 22/05/23: Shares on the move | Trending sectors | Results to look out for
In this week’s Market Moves, Ben takes a look at some of the biggest winners and sector trends over the past week, including a look at the performance of gold and gold shares, plus a look ahead to another big week of financial results and updates. Despite the market drifting sideways and a sense of […]
How to avoid investment mistakes: Part 2 – Outside influences
In the second part of this series about avoiding investment mistakes, Ben looks at how influences from the outside world can ruin the best investing plans, and what you can do about it. When it comes to sensible stock selection, careful portfolio management and navigating the ups and downs of markets with aplomb, we really […]
Investing in government bonds for income – is it worth it?
Phil looks at the income on offer from UK government bonds and asks whether sticking with shares might still be a better option. Since the 2008/09 financial crisis, investing in government bonds for income has not been very fruitful. The policy of very low-interest rates as a response to the crisis meant that many governments […]
Market Moves 15/05/23: Shares on the move | Trending sectors | Results to look out for
In this week’s Market Moves, Ben takes a look at some of the biggest winners and sector trends over the past week, including significant moves in travel and leisure stocks, plus a look ahead to a bumper week of financial results and updates. Among mid and large-cap stocks, pubs group Mitchells & Butlers was the […]
How to avoid investment mistakes: Part 1 – Human psychology
In the first of a multi-part series on avoiding investment mistakes, Ben looks at how our own emotions and behaviour can lead to poor decisions, and what we can do about it. When it comes to making good decisions, psychologists have found that investing is a field where humans are surprisingly bad at doing the […]
Twenty-five top-scoring companies
Richard reveals the top-scoring shares to have been through his “Five strikes and you’re out” scoring system. Top of the list is a company he has never investigated before. In Five strikes and you’re out, I introduced a method for rapidly scoring shares by eyeballing the financials in SharePad using one custom table. Every day […]
Market Moves 09/05/23: Shares on the up | Trending sectors | Results to look out for
In this week’s Market Moves, Ben takes a look at some of the biggest winners and sector trends over the past week, including consumer discretionary shares and housebuilders, plus upcoming financial results for the week ahead. Shares in the Consumer Discretionary industry have had a very mixed 18 months. As one of the most economically-sensitive business […]
How to use dividend growth in your strategy
Company dividends appeal to investors for a variety of reasons. Not only are they an important source of investment returns, but they can also tell you a lot about the quality of a business, especially when its payouts are growing. _______________________ High inflation and rising rates have conspired to hamper equity returns over the past […]
Market Moves 01/05/23: Shares on the up | Trending sectors | Results to look out for
In this week’s Market Moves, Ben takes a look at some of the biggest winners and sector trends over the past week, as well as upcoming financial results for the week ahead. Towards the end of last week, it seemed increasingly likely that another US regional bank – this time First Republic Bank (NYSE: FRC) – […]
How to find shares that could rebound fast in a recovery
A major shift in the market cycle has forced investors to think more defensively over the past 18 months. But with expectations of a recovery on the horizon, where can you look for some of the early winners when markets rebound? _________________ When markets began to slide in early 2022, it was an acknowledgement that […]
Five strikes and you’re out
Richard employs some fuzzy logic to narrow the number of companies returned by his filter. A bit like we might do a set of press-ups every day, it is a routine to make him a stronger investor. While everybody is talking about the latest developments in artificial intelligence, getting computers to think more like humans, […]
How to build defence into your portfolio
With inflation proving stickier than hoped, the pressure on company profits remains. This week Ben looks at how shares in good quality defensive shares could help protect your portfolio. News this week that double-digit inflation in the UK is proving to be frustratingly sticky is a conundrum for investors. After the inflation-induced pressure on share […]
Market moves – Fund managers, earnings, strongest risers and upcoming results
In this week’s view of the market, Ben takes a look at fund manager performance, the earnings outlook, sector momentum, one-year share winners and upcoming financial results for the week ahead. Last year was a difficult one for private investors, so in a way, it’s reassuring to hear that many professionals had a hard time […]
The dark side of share-based pay
The way companies account for share-based pay tends to erase the cost from profit and free cash flow, which is how we measure their performance. Richard factors share-based payback in and discovers it can make a difference to our perception of businesses, and their valuations. Every year I read Fundsmith’s annual letter to fund holders […]
How to use low volatility to your advantage
Does high risk really mean high reward, or can lower volatility actually generate a better return? Ben Hobson explores the low volatility anomaly. An age-old truism of stock market investing is that with great risks come great returns. You don’t have to look far to find investors putting their capital at risk in the hope of […]
Market moves – Turn of the month effect, fastest risers, director deals and upcoming results
Ben Hobson takes a look at market moves this week, including the highest risers, director and City dealing and upcoming results. I’ve got a bit of a soft spot for seasonal stock market anomalies. Making connections between price trends and the calendar has always been a popular pastime for some. And despite the acres of […]
How to use a high dividend yield strategy
Attractive dividend yields are a magnet to many investors, but they come with risks. Ben Hobson explores a strategy for finding high yields without falling into a trap. Company dividends can play a part in just about any investment strategy. Not only are they a source of cash returns for income investors, but they can […]
The Top Portfolio Mistakes We’ve Seen from Our Analysis
Prepare to be captivated, as I unravel the troubling discoveries I made after analysing dozens of investment portfolios sent to me via my Campaign for a Million to educate a million people to be better investors. Biggest errors 1. Over-diversification: The curse of too many funds A prevalent issue was over-diversification, resulting in subpar performance. […]
Sector focus: rethinking technology and healthcare
Technology and healthcare shares experienced very mixed returns last year. But is it time for investors to change their expectations for these sectors? Ben Hobson explores what might lie ahead. Twelve months of turmoil made 2022 a year to forget for many investors. But one trend that deserves to live long in the memory […]
Finding bargains in the quality bin
Welcome to my first article for SharePad. All being well, this marks the start of a regular column from me exploring ideas, themes and strategies for investing in shares. On the face of it, that sounds like a tall order. I’ve been writing about shares and stock markets for more than 20 years, and one […]
Getting the right balance between risk and return
Investing in shares is risky but if you want to grow the value of your investments you have to take some risk. Getting the balance between risk and potential returns is one of the key decisions you must make as an investor. There’s often a lot of focus on gains but very little on risk. […]
Stock Market for the Rest of 2023: Should You Be Cautious?
With the start of 2023 showing promise for US-centric portfolios, many investors may be feeling optimistic about the stock market. However, a closer look at the outlooks and forecasts from major banks and analysts reveals a more complex and varied picture, with some cautionary notes and potential challenges on the horizon. I’ve had a great […]
Refining ROCE
Technically, Sharepad’s ROCE calculation is ROACE or Return on Average Capital Employed. It is a good refinement of perhaps the most revealing performance statistic for a business. Sometimes readers ask me why my figure for a certain financial statistic is different from SharePad’s, or the figure quoted by the company. Usually, it is because the […]
Stay Ahead of the US Market: The Best Stocks to Buy in 2023
Are you looking to stay ahead of the market and get the best return on your investments? If so, you’ll want to start researching the best stocks to buy in 2023. In this article, we’ll provide you with an overview of the best stocks to buy in 2023, so you can make informed decisions about […]
How to survive a bad year
Richard calculates the annual performance of his portfolio going back 13 years. One good or bad year tells us nothing about the skill of an investor, he says. If you had a bad one, do not beat yourself up about it. Happy New Year! I am kicking this year off on a bum note, talking […]
Trading Psychology Pitfalls of a Systematic Approach
Below is a list of common trading psychology problems that I’ve compiled from my own trading journey. I see them as the main problems that would affect the results of my own systematic approach or delay the learning process by chasing red herrings. I have had to overcome all of them over the years though […]
How has 2022 been for UK stocks and any reason to be optimistic in 2023?
Let’s look at the data. Yes, I am data-obsessed. Too many people speak twaddle without looking at the facts or data. By the way, here’s a good trick on social media when you find annoying twaddle, just put this into the comments “Data?”. Out of the 350 largest quoted companies on the London Stock Exchange […]
UK Stock Market & UK India Free Trade Agreement
I write to you from India. In fact from Asia’s largest tech summit. I’ve seen companies in AI, quantum computing, cancer detection, and rocketry (India launches UK satellites btw), and today India had its first private rocket launch. Then there were companies in Advanced Manufacturing, advanced materials and of course cyber security (they do have […]
What Do Experts Say About Portfolio Allocation During High Inflation
We’re not alone – if it makes you feel better. Look at the Americans. Of course, you could argue that the market will help when rates are rising according to history: It’s no secret that inflation can have a significant impact on your portfolio. During times of high inflation, it can be difficult to maintain […]
Is It Time to Buy Sterling?
I write to you from New York where I’ve been doing Bloomberg and met with a former employee of my Asset Management company now earning the big bucks in M&A in the big apple! The British pound continues to face significant challenges, with the currency seeing significant volatility in recent years. This is likely to […]
The Economic Data Suggesting a Stock Market Rally
First, some personal recollections on Her Majesty the Queen In light of the sad news of the passing of Her Majesty the Queen, I hope my article on finance is seen as a distraction. I had the privilege of meeting their Majesties the Queen and the now King. For the Queen, it was about a […]
Is Now the Time to Buy the Market Bottom?
Inflation is slowing. Corporate and consumer spending is strong. Have we reached the bottom of the market, or is there more to fall? The S&P 500 hasn’t had an H1 this bad since the 1970s. But that represents an opportunity for investors: in the H2 of that same year, the market recovered and actually finished […]
Is This Stock Market Rally For Real?
Capping off a memorable July, American stocks recovered their footing. Alpesh Patel OBE asks if this rally is for real or if it’s a bear trap? The S&P gained 4.3%, the Nasdaq Composite increased 4.7%, and the Dow increased by about 3% in the final week of July. The S&P 500 increased by a total […]
Can We Get a Year-End Stock Rally?
This was one of the most often asked questions at my Great Investing and Trading Summer School (see pics) which I’ve just completed. So let me share the analysis with you. The S&P 500 has had its worst first-half performance since the 1970s. But can we get a year-end stock rally? What does the data […]
Is ESG Investing Good or Bad for Your Pocket?
Environmental, social and governance (ESG) investing is a strategy that bets on companies trying to make the world a better place. Alpesh asks is this just another high-minded idealist fad? Or does the global good make it worth the risk? Type ESG into Sharescope or SharePad’s ETF list and you’ll find around a hundred funds. I […]
From ideas to investments: Investing in local heroes
Richard makes the case for investing in local firms, helped by analysts from The Yorkshire Fund. As usual, SharePad can help. I am starting this article with a shout-out to the analysts of the Yorkshire Fund. You probably have not heard of the Yorkshire Fund. We cannot invest in it. It is a mini financial […]
When Return of Capital trumps Return on Capital
Jamie Ward returns with his last article for ShareScope to discuss risk and complacency in the market and suggests that the past few years might not be an adequate guide for the future. Markets always go up… Since the Great Financial Crisis (GFC) in 2008, there has been a received wisdom to always ‘buy the […]
Roll-out, Roll-up and public market arbitrage | SBRY, PRZ, COST, DCC, MRL, BREE
Jamie Ward takes a detailed walk through two expansion strategies and outlines the types of company and sectors where investors are likely to find these strategies as well as highlighting how to spot companies using them well. Two common ways for profitable growth for many companies can be summarised as roll-out and roll-up. Roll-out is […]
Is this a stock market crash? A look at the indices
It’s always worth keeping an eye on the indices. They are the bellwether for the markets – whenever the Dow plunges or hits new highs then we always hear about it. However, there is also a disconnect between the indices and the overall market. One thing that I found a few weeks ago is that […]
Happy New Year
Richard slims down his flabby SharePad setup to start the year with a lean, clean investing machine. He sets out his goals for 2022 and says thank you to Phil Oakley, who hung up his boots in December. It is that time of year when many of us eat and drink too much and then […]
A guide to selling Puts: Shares on sale
A couple of months ago I wrote an article extolling the virtues of selling Covered Calls on FTSE 100 stocks. The technique involves selling Call options on shares you already own to bring in additional income. When you combine the technique with a portfolio of dividend-yielding shares, you can create a veritable income machine. However, […]
Winners in an uncertain world | Vertical integration
In the chaotic business conditions we are experiencing, self-reliance has been a source of competitive advantage. Since we do not ever know what the future will hold, Richard goes in search of companies that have an element of vertical integration. I hope it is not smugness, but I have felt a sense of satisfaction when […]
The Trader: 3 principles for trading on the stock market
Breakouts are an excellent way to swing trade and profit from bull markets. I love breakouts because they’re a high probability pattern of continuation and also because it means that the price is rising. However, many people try strategies that that are inherently risky. Sadly, one private investor commented that they’d invested into a stock […]
Trading with Golden Crosses: Easy win or easy loss?
I should start by saying that I am no technical analysis whiz, and this article will likely bore those with an encyclopaedic knowledge of buy/sell signals and chart shapes (cup and handle, anyone?). I got into investing after I started working at ShareScope, and I desperately wanted it to be easy. Technical analysis seemed like […]
Financials, filters and FOMO | Using SharePad to find opportunities
Filters are one of the most powerful tools in SharePad, but Richard has been experimenting with another way to discover investment ideas and increase his “market intimacy”. Traders, of course, have price charts to guide them. Many investors focus on financials, and use filters to find new shares with attractive financial characteristics. Being a buy-and-hold […]
Step-by-step guide to Covered Calls | How to 3x increase dividend yield
Greg Robinson from Fire Revolution spells out how you can double or even treble increase dividend yield with covered calls.
Tech Stocks or Banks for Better Returns?
Will tech stocks still provide reasonable returns for the rest of the year? Or are bank stocks a better bet?
Screening For My Next Long-Term Winner: Venture Life
I like companies that boast significant net cash. I therefore apply certain filter criteria to identify some reasonable cash-flush businesses.
Why Chasing Dividends in Stock Investments is a Bad Idea
What defines a worthy stock for investment or retirement income? Unfortunately, for many investors, the answer is a stock that pays dividends. While dividends are a factor (among many) that can be used to judge a stock, it isn’t necessarily the most important or profitable determination to make when investing.
Good strategy/Bad strategy
A company’s strategy should not just tell us what it wants to achieve, but why and how. Richard introduces a simple framework for analysing strategy and highlights a good strategy, and one that is more difficult to fathom.
Shares to help you sleep at night
I am probably jinxing it now, but owning shares in Howden Joinery has never lost me sleep. Despite the pandemic and a fall in profit, this year’s annual report has the same calming effect it does every year, and not just because of the pictures. Howdens explains the business very well, and quietly delivers on the promise.
Alpesh Patel on US Investing: Should We Buy Any Stock Market Dips?
As the Dow Jones Index took a tumble at the end of February, many analysts saw this as the beginning of a long-overdue market correction. Some have floated talk of a stock market bubble for a while, but despite the challenging conditions of the last year, the market rebounded and finished out the year strongly. However, the dip on the 24th of February — which saw the index shed 1000 points — has led some traders to talk of an opportunity to cash in on the slide.
Lessons from the Trend (Part 2): Moving Averages
In this article I will continue focusing on primary and secondary trends but this time I will use moving averages to define market phases. You can also view Part 1 of this article Lessons from the Trend (Part 1): Breakouts for more primary trend details that relate to what we are talking about here. For […]
Why shorting is good for investors
Although I am much more of a trader myself as I rely on trading profits to pay my bills, I do think investors have much to be gained learning from the art of short selling stocks. There are several reasons that will be explained in this article, but first it is important to understand what […]
Fishing like Fundsmith
Richard builds a Fundsmith filter, taking it from concept to conclusion. The aim: To reduce the “junk” in our watchlists so we are fishing in a better-stocked pool of shares. My editor wonders whether my obsession with Fundsmith Equity Fund is a ‘fatal attraction’ but he has permitted one more article. It would be remiss […]
Putting performance into perspective
Richard reads Fundsmith Equity Fund’s annual letter to fundholders and suggests a modest improvement that could change your perception of financial history. He also responds to reader’s queries about On The Beach, the company he profiled two weeks ago. If you are a fundholder in Fundsmith Equity Fund, then congratulations. You’ve just received fund manager […]
Screening For My Next Long-Term Winner: Games Workshop
Could now be the time to return to dynamic growth shares? Wonder-stocks such as Fever-Tree, Boohoo.com and Keywords Studios are all well below their highs of 2018… …and I wonder whether the widespread selling has created a super-growth bargain somewhere in the market! Let’s employ SharePad to find out. I bought the shares at £8 […]
Starting with the big picture
Richard starts his analysis of fast growing online beach holiday retailer On The Beach with new SharePad views designed to give him the big picture at a glance. Before I start dreaming about holidays, some humble pie. A few weeks ago I ridiculed the idea of using more than three SharePad windows by suggesting they […]
Magic Formula stocks for 2019 & 2018 performance
Back in 2016 we began testing and tracking three model portfolios based on Joel Greenblatt’s magic formula approach (click here to read more about this) and last year we added a forth model (click here to read this article). Regular readers will know how these portfolios are put together. Here’s a quick recap for the […]
Assessing whether profit is real
On the face of it Ricardo is a great company, but in recent years its earnings have deviated a long way from the cold hard cash that has flowed into the company. That may be changing. Though I don’t normally pay much attention to share prices, a 40% slump in the price of Ricardo values […]
How I build and manage my share portfolio
The key thing to stress at the beginning and, as many of you will already be well aware, there are many ways to become a good investor. There are many different techniques, many different styles and strategies from fundamental analysis, technical analysis to even astrology and Biorhythms. It sounds like a cliché but the best […]
A Special SharePad Investigation: Patisserie Valerie
Before I go any further, let me just state that I am not here to say “I told you so”. But whenever I have lost money on a share, I have always found going back to see where I went wrong to be very instructive. In fact, trying to spot the warning signs from any […]