Roll your own alternative performance measures
Richard looks at the good and the ugly in Hollywood Bowl’s alternative performance measures and concludes that the company has put a positive gloss on
1st March 2023
Richard Beddard
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.
Getting to grips with Alternative Performance Measures
Companies publish alternative performance measures (APMs) that remove one-off costs and gains from profit to give us a better understanding of how they have performed.
15th February 2023
My partner is an AI
Richard deploys ChatGPT, an artificial intelligence program, to help him understand two software platforms we can invest in that incorporate artificial intelligence. His conclusion: this
1st February 2023
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
18th January 2023
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
4th January 2023
One custom table to rule them all
Richard puts one last company through his process in 2022. It gives him a chance to reflect on how he has changed the way he
21st December 2022
A special business with financials to match
Market researcher YouGov is known for its predictions, but it may not be the accuracy of those predictions as much as their speed, quantity, and
7th December 2022
Putting the ‘f’ back into sustainability
Richard says finding a great business is only the first stage of finding a great investment. The second stage, establishing that what makes a company
23rd November 2022
Growing from a position of strength
As Richard trawls the stock market for high-quality businesses that are less pricey than they used to be, he takes a first look at Auto
9th November 2022
Ploughing through an economic blizzard
Digging deep into stock market sensation Halma’s history, Richard gains clues about the kind of businesses long-term investors should think about owning in an economic
26th October 2022
When growth stocks fall to earth
Richard takes a first look at Dechra Pharmaceuticals, a company that has grown profit at a compound annual growth rate of 19% since 2013, yet
12th October 2022
Clues between the segments
Richard takes a look at the segmental report of Cohort to gather insights into the company’s costs as it grows in complexity. The segmental report
28th September 2022