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 […]
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 […]
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 […]
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 […]
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. […]
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 […]
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 […]
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. […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 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, […]
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 […]
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 […]
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 […]
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 […]
Greg Robinson from Fire Revolution spells out how you can double or even treble increase dividend yield with covered calls.
Will tech stocks still provide reasonable returns for the rest of the year? Or are bank stocks a better bet?
I like companies that boast significant net cash. I therefore apply certain filter criteria to identify some reasonable cash-flush businesses.
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.
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.
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.
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.
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
Richard Beddard investigates DotDigital in SharePad. The data indicates it has been very prosperous since it floated on the London Stock Exchange in 2011. A surge in investment suggests it intends to keep things that way. The starting point for many of the ideas I discover in SharePad is a basic four stage process that […]
Buying shares that are out of favour is a favourite strategy amongst contrarian value investors. However, in recent times it is not one that has worked particularly well. In fact, much more success seems to have been had with momentum strategies. These involve buying shares that are very popular and, in many cases, have been […]
For those of you who like the idea of a buy and forget investing strategy then Joel Greenblatt’s Magic Formula of buying good companies at fair prices takes a lot of beating in my view. It is a simple and powerful way to put together a portfolio and one that has a pretty good long-term […]
If you were to ask me to recommend just one book on investing then I would struggle to think of anything better than Joel Greenblatt’s book ‘The Little Book that beats the Market’. It is very easy to read and is not very long. The book does a great job in convincing the reader that […]
Holidays are great for switching off from the stresses and strains of the daily grind and concentrating on what’s really important in life. I’ve just had three weeks away from work – I can’t remember the last time I did that – spending time relaxing with my family and doing jobs around the house that […]
For my debut SharePad article, I’ve been invited to introduce my stockpicking strategy. It’s a daunting prospect because strategy is everything. Without a strategy, luck or instinct will determine our returns and in the stock market neither can be relied on. There are many reinforcing activities that make a good strategy, so please forgive the […]
Phil’s Investors Chronicle article on how to be a successful dividend investor. Read the article
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 […]
