Quality cyclicals – not for the faint-hearted
Over the years I have ignored Kingspan because it is big, acquisitive, and supplies building materials. My gut reaction to these facts is that Kingspan is best avoided, but my gut could well be wrong.
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.
Over the years I have ignored Kingspan because it is big, acquisitive, and supplies building materials. My gut reaction to these facts is that Kingspan is best avoided, but my gut could well be wrong.
Recently, I have adapted my SharePad setup so I can turn over even more rocks. The cornerstone of my setup remains the KISS+ filter. KISS, stands for Keep it Simple (Stupid) and the plus sign is just a reminder that I have improved this filter over the years.
If you look DotDigital, as I did a few years ago, you will find much to like about the business: Source: SharePad financial summary It is highly profitable in terms of Return on Capital Employed and profit margin. The exciting thing about a company like this is, as long as it can reinvest the cash
Bunzl, a company I investigated last year, is a classic roll up A distributor of everyday items consumed by businesses and organisations, it routinely acquires much smaller distributors, improves their efficiency and creates economies of scale. This reduces customer’s procurement costs, and improves the profitability of the mothership. To grow, the company has repeated this
Barr makes Irn Bru, which I drank once, getting on for forty years ago in Scotland. Irn Bru is to Barr what Coke is to Coca-Cola and Vimto is to Nichols, the drink upon which the business was built. Being a southern softy I may not have been a regular drinker of Irn Bru, but
Happy New year. This year, I have resolved to keep things simple, which is not easy in investing. Aide memoire… Just before Christmas Chris, a SharePad customer, emailed me with a request: When I look at company reports which often run to a couple of hundred pages I find the position somewhat daunting… It would
This year has confirmed that most of the news is at best irrelevant to me as an investor. Worse, the news stressed me out. It regularly fed my mind with impossible problems to solve. Companies I admired closed down, temporarily I hoped. They raised money in emergency fund-raisings. They furloughed staff. So far, the determination
Having prospected for investments in the soft drinks industry, I think Nichols is perhaps the most intriguing of quite an interesting group. It has been enormously profitable and a steady grower, unlike the other candidate, Fever-Tree, which has experienced both extraordinary profit and extraordinary growth. Fever-Tree makes me nervous. Explosive growers rarely keep growing rapidly
I know this is going to make me sound like an alcoholic, but I rarely drink soft drinks. When a reader requested an overview of the soft drinks sector, I was not, therefore, particularly enthusiastic. For me, liking the product, or at least seeing its value, is a prerequisite for investment, and, on health grounds,
When I told my wife I was researching Hotel Chocolat and my first action would be to buy some chocolate, she reminded me that the most important thing about research is to include lots of participants. Scuttlebutting chocolate 70% dark chocolate promised to be our optimal pleasure point, and so it was. When I brought
James Halstead makes vinyl flooring, the kind we see in hospital corridors, GP surgeries, clinics, schools, offices, laboratories, prisons, factories, shops, trains and boats around the world. James Halstead’s biggest brand is Polyflor. The company’s social media accounts are a good way to get a feel for the product and you can take the Commercial
Before I started fishing for a share to investigate for this week’s article, I culled my personal filter library. Many of the filters are derivations, refinements that effectively render older filters redundant. Some are failed experiments. Being a simple sole, I cut the library down to four: The old ones are the good ones –