Richard is a highly-respected investment writer well-known for his Share Sleuth portfolio, a model portfolio he runs for the investment platform Interactive investor. Richard eats his own cooking – buying good businesses at reasonable prices and holding them for the long-term in his Self Invested Personal Pension.
I’m a long-time ShareScope and SharePad fan and my aim is to help you find better companies faster using the fantastic tools at your disposal. My focus is on finding businesses we can reasonably expect to prosper for many years. As well as analysing data, I work out the strategies companies are following and try to verify that they are working in the real world by quizzing executives, visiting companies, trying their products and observing how they operate.
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
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.
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
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
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
Shares in SDI have plummeted. Richard examines the price differential between the company, a manufacturer of scientific equipment, and Judges Scientific, a firm it is often compared to. In the last two weeks, my 5 strikes system* has only surfaced two new investment ideas: SDI and Goodwin. These businesses have good financial track records, but
Richard picks holes in the financial histories of four companies and finds little to trouble him. Remarkably Cake Box, a company that published an annual report riddled with errors two years ago, is one of them. As fishing expeditions go, my daily trips in the last two weeks have been particularly unfruitful. Few companies have
Richard reveals the latest batch of shares to go through his 5 strikes system. Topping the list is Kainos, a pandemic winner that probably has what it takes to prosper over the long term. Here are the latest candidates for long-term investing according to my 5 Strikes system: Name AR date Strikes Score Kainos 21/7/23
Richard looks beyond how Christie Group PLC makes money, to how it is going to make more. He examines the challenges it faces and how it plans to overcome them, aka strategy. My enthusiasm for Christie has diminished in the two weeks since I introduced it to you (see 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,
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
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.